10th January 2024 > > spot BTC ETFs.

tl;dr

We finally have approval for spot BTC ETFs.

Market Snap

Market Wrap

The leveraged children – having taken a battering on both sides in the recent past – are playing ball by not over-extending themselves. This is good.

Curious Cryptos’ Commentary – Jim Cramer

Curious Cryptos’ Commentary – spot BTC ETF

Despite that fake tweet from the SEC account (see below), it seems that we do now have official approval for a number of spot BTC ETFs.

Price reaction has been muted, telling us very clearly – and with no great surprise to anyone – that the approval process was fully priced in. Trading starts tomorrow at the US open. It is the price action from that point forward, measured in months not hours, that will help to inform us whether we are about to see BTC adoption on a scale never seen before, or if BlackRock, Fidelity, et al, have been misled by their institutional clients as to the real demand for this product.

Interesting times my friends, interesting times.

Curious Cryptos’ Commentary – that fake SEC tweet

This is one of those “you couldn’t make it up stories”.

An SEC employee’s X account was compromised, an account that has been confirmed as not using 2FA, to broadcast a tweet announcing that spot BTC ETFs had been approved.

A rapid rise upwards in the price of BTC was dramatically reversed when SEC Chair, Gary Gensler, stated:

“The SEC twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”

Critics were quick to point out that such breaches of security by private firms have been roundly condemned, and in some cases prosecuted, by the SEC for market-manipulation, a securities crime that ranks second only to insider dealing in the pantheon of ill. Shorts that were liquidated on the way up, and longs that were liquidated on the way down, may have a strong case to claim compensation from the SEC.

A demand has been made that the SEC investigate itself for market-manipulation, which would be a beautiful process to watch. Unless the outcome of the investigation is rigged, sorry, until the outcome is rigged in favour of the SEC, seriously discomforting questions will head Gensler’s way. Truly, he has done the reputation of the impartiality of the rule of law some very serious damage during his tenure as Chair of the SEC. Still, as he made clear in testimony to the Financial Services Committee, he makes serious coin, so one level it just doesn’t matter.

…

An alternative explanation has been suggested that the tweet was simply sent out too early in error.

If this is the case, then the questions heading Gensler’s way in the light of his comment above will provide yet more entertainment.