New Market Players Enter Spot ETF Race; Bitcoin Price Eyes $40,000!

Bitcoin is currently on an exciting recovery journey, and all eyes are on the potential approval of Bitcoin Spot ETFs scheduled for January. Eric Balchunas, a respected Bloomberg ETF analyst, recently shared key insights into BlackRock’s updated ETF application, adding an extra layer of excitement to the ongoing developments.

The race for Bitcoin Spot ETFs is gaining momentum as new players join, bringing the total issuers to an impressive 13.

Pando Asset’s Big Move

Pando Asset recently took a bold step by filing Form S-1 with the SEC on November 29, a crucial move for its cryptocurrency Exchange-Traded Products (ETPs) offering, as reported by Coinpedia. Pando aims to list its proposed Pando Asset Spot Bitcoin Trust on the Cboe BZX Exchange, using Coinbase as the custodian.

This strategic move reflects Pando’s ambition to make its mark in the U.S. market as a foreign entity.

Expert Insights

Eric Balchunas, a Bloomberg ETF analyst, sheds light on BlackRock’s meeting with the SEC’s Trading and Markets division, where a revised in-kind model design was presented. 

Simultaneously, ongoing discussions with regulators about cash creation versus in-kind delivery continue to shape the landscape for potential Bitcoin Spot ETF approvals. The eager anticipation for these ETFs has triggered a market rally, leaving a mark on both spot and futures markets.

Also Read: Compound Labs CEO Falsely Accused of SEC Letter On BlackRock Spot ETFs

Market Responds to ETF Expectations

The market’s response to the looming Bitcoin Spot ETF approval is evident, causing an increase in both spot and futures markets. The heightened excitement contributes to a rally in Bitcoin prices, resulting in an overnight spectacle of $8.94 million in short liquidations.

Tuesday marked a significant achievement for ProShares Bitcoin Strategy ETF (BITO), reaching a record-high $1.47 billion in assets under management. Just a year after its October 2021 launch, BITO surpassed $1 billion, reaching $1.42 billion in assets a month later. Meanwhile, Grayscale Bitcoin Trust’s (GBTC) proposed amendments indicate strategic preparations for the ETF launch, aimed at tracking spot Bitcoin.

Market Projections: Where are We Headed?

Adding a technical perspective to the excitement, crypto analyst Crypto Tony predicts a potential rally to $40,000 for Bitcoin. Tony suggests that sustained demand from market participants could push BTC prices even higher after reaching $40,000. However, a correction is anticipated, with prices potentially dipping to $36,000 after the initial surge.

Read More: Spot Bitcoin ETF Market Could Reach $100 Billion: Bloomberg

As January approaches, all eyes remain fixed on the unfolding narrative of Bitcoin Spot ETFs and the transformative impact they could bring to the cryptocurrency market.