“The impact of fact-selling will decrease due to approval of Bitcoin spot ETF” = K33 latest report

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Impact analysis of Bitcoin spot ETF

K33 Research, a crypto asset (virtual currency) analysis company, released a report on the 9th regarding the impact on the market of the Bitcoin (BTC) spot ETF (exchange traded fund), which is currently under review in the United States.

Like many experts, K33 Research analysts predict that Bitcoin spot ETFs will be approved in the US by the 10th. He also expressed the view that the chances of this approval becoming a virtual selling event for Bitcoin are smaller than they were last week.

Pro tip: Read our latest market report while the market awaits the official ETF decision.

Among other things, we argue that the coming ETF approval is less likely to be a sell-the-news than it looked one week ago.

Read more https://t.co/11EhhUbm7p

— K33 Research (@K33Research) January 9, 2024

What is an ETF?

Abbreviation for “Exchange Traded Fund.” Refers to investment trusts listed on financial instruments exchanges, where a wide range of financial products, not just virtual currencies, are traded.

Bitcoin physical ETFs attract a lot of attention from investors because they actually own and manage Bitcoins.

Virtual currency glossary

The company released a report on Bitcoin spot ETF on the 2nd. At that time, it pointed out that there was a possibility of temporary selling pressure after approval, and that there was a 75% probability that selling would prevail due to the approval of the Bitcoin spot ETF. He also predicts a 20% chance that there will be enough inflows to offset the selling pressure, causing prices to rise.

connection: “Possibility of actual selling due to Bitcoin spot ETF approval” K33 Research’s opinion

On the other hand, this report points out that “market conditions have significantly improved due to the stop-out (forced liquidation) on the 3rd of this month.” He argued that this has reduced the impact of long (buy order) liquidations on the market.

On the 3rd, the price of Bitcoin fell due to the opinion that the U.S. Securities and Exchange Commission (SEC) will disapprove all Bitcoin spot ETFs this month by the virtual currency service company Matrixport. It plummeted.

connection: U.S. stock interest selling continues, virtual currency-related stocks fall due to sharp drop in Bitcoin, etc. | 4th Financial Tankan

K33 Research recently analyzed the status of the Bitcoin perpetual futures market and the Chicago Mercantile Exchange (CME), and found that “the current market is strong enough to handle the profit taking from the announcement of ETF approval.” It shows the way of thinking.

On the other hand, we maintain the view that the final decision on the approval of a Bitcoin spot ETF will result in significant price fluctuations. “If there’s one week in 2024 to pay particular attention to, it’s this one,” analysts at the firm said, adding that they expect volume to pick up and risk adjustment to move quickly over the next week.

connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks

Bitcoin ETF special feature

fee competition

In addition to the expectation that the SEC will soon approve a Bitcoin spot ETF, many say that to ensure fairness, the SEC will approve ETFs from multiple companies at the same time. It appears that each company applying for a Bitcoin spot ETF is trying to differentiate itself based on fees.

connection: U.S. companies applying for Bitcoin spot ETFs face fee competition

In this report, K33 Research also mentions fees. There are two benefits to having low fees for ETFs.

“One, and most importantly, investors will be able to trade with lower fees. The other is that ETF issuers will have less pressure to sell Bitcoin to cover their fees.” It has said.