Bitcoin Holds Drop As Traders Mull Likely Reaction To Spot ETFs
(Bloomberg) -- Bitcoin held a retreat as traders assessed how crypto markets might react if regulators meet expectations by approving the first US exchange-traded funds investing directly in the token.
The largest digital asset shed 2.4% over the past 24 hours and traded at $42,400 as of 10:31 a.m. Wednesday in Singapore. Bitcoin is up 156% this year, a rally driven partly by wagers that the ETFs will encourage fresh demand.
One key issue is whether an actual green light for the products will spur some profit-taking, based on the adage that investors “buy the rumor and sell the news.” Put another way, the potential interest in the spot Bitcoin ETFs planned by the likes of BlackRock Inc. and Fidelity Investments remains unclear.
Read more: Bitcoin's Rebound in 2023 Is a Gamble on ETF ‘Demand Shock'
The market is “almost certain” that the US Securities & Exchange Commission will give permission for spot Bitcoin ETFs before Jan. 10, Nic Carter, founding partner at Castle Island Management LLC, said on Bloomberg Television. The funds will widen the base of crypto investors in the medium term, he said, while flagging the possibility of a “news selling event” in the more immediate period.
Smaller tokens such as Avalanche and Solana posted larger losses than Bitcoin in the past 24 hours, while meme-crowd favorites like Dogwifhat also sank. BNB, the coin of the Binance exchange, bucked the selloff with a 10% climb.
Bitcoin's advance this year has also been fueled by expectations of declining interest rates in the US. The rally has partially repaired the damage from a precipitous 2022 crash that reverberated around the crypto industry. The token remains below its 2021 pandemic-era record of almost $69,000.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
