CEO of ARK Invest, Cathie Wood has shared her perspective on the approval timeline for Spot Bitcoin ETFs. She has also highlighted the significant impact the official authorization of Bitcoin ETFs would have on the price of BTC.

BTC Price Boom Predicted Following ETF Acceptance

Founder and CEO of American asset investment management firm, ARK Invest, Catherine Duddy Wood has recently appeared in an interview with Yahoo Finance. The live interview which was published via YouTube centers on Wood’s views and opinions regarding the potential approval of Spot Bitcoin ETFs and its effect on the price of BTC. 

According to the ARK Invest CEO, the price of BTC could surge substantially if the United States Securities and Exchange Commission (SEC) approves Spot Bitcoin ETFs for institutional investors. 

“What we think is going to happen here is that the SEC is going to be giving BTC, a spot bitcoin ETF, the green light for institutional investors to participate. I think a lot of institutions have been reticent before the SEC approves a spot bitcoin ETF to do very much at all in the crypto asset world,” Wood stated.

She added:

“All we need is for the trillions of dollars in institutional assets out there to allocate maybe 0.1% or 0.2% to an ETF, which will be one of the easiest ways to gain exposure and one of the most efficient ways to gain exposure to BTC. That will move the price significantly.” 

BTC price fails to beat resistance at $43,000 | Source: BTCUSD on Tradingview.com

Bitcoin ETF Approval Expected In January

During the interview, Wood outlined a timeline for the approval of Spot Bitcoin ETFs, predicting the potential approval dates for January. 

“We do think it will be in January. Famous last words, don’t want to say we know anything, because we don’t. But it’s just the actions of the SEC that are leading us to that conclusion,” Wood said.

Despite the positive forecast, the ARK Invest founder also stated that if the US SEC remains undecided about Spot Bitcoin ETFs, then a BTC ETF may not be necessary. 

“We don’t want a spot bitcoin ETF to get the green light if there are any uncertainties that the SEC may have. So I think we’re answering those uncertainties one by one, each of the filers for a spot bitcoin ETF. And I think the dialogues are very positive. I think the outlook is bright for a spot bitcoin ETF,” Wood stated.

Featured image from Markets Insider, chart from Tradingview.com

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The U.S. Securities and Exchange Commission (SEC) is reportedly discussing crucial technical details with financial firms that applied for spot market Bitcoin (BTC) exchange-traded funds (ETFs).

According to a new report by Reuters, industry executives say that the deliberation between the regulatory agency and those who placed bids for BTC ETFs is a sign that the SEC will soon approve the products.

Anonymous sources familiar with the matter told Reuters that the topics of discussion include custody arrangement, creation and redemption mechanisms and investor risk disclosures.

A spot market BTC ETF would give traders exposure to the crypto king via traditional finance and stock exchange platforms. However, the SEC for a while rejected bids to create such products, citing consumer safety.

In August, a federal judge ruled against the regulatory body, saying that it must reconsider its rejection of crypto asset manager Grayscale’s bid to create a spot market BTC ETF as a means of avoiding arbitrariness and inconsistency.

Previously, the SEC had approved futures BTC ETFs, but the judge said they failed to adequately explain why futures ETFs were greenlit while spot market ones were denied.

Marquee financial firms that have applied to create spot market BTC ETFs also include Cathie Wood’s ARK Invest, the world’s largest asset manager BlackRock and mutual fund manager VanEck.

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Generated Image: Midjourney

The price of Ethereum seems to be back under the influence of the current market sentiment despite enjoying a relatively positive week. On Wednesday, September 6, Ark Invest filed for the first Ethereum spot exchange-traded fund (ETF) in the United States.

This ETF application had a tame impact on the price of Ether, with the cryptocurrency only climbing to $1,650 the following day. Moreover, the token has almost fully reversed the minor gains from the significant development.

Ethereum Price Registers 0.1% Rise Last Week – Here’s Why

Ethereum currently changes hands at about $1,628, according to data from CoinGecko. A negligible 0.1% price increase in the last seven days underscores the struggling market performance of the second-largest cryptocurrency.

A spot ETH exchange-traded fund is an investment vehicle that tracks the price of Ethereum on the spot market, allowing investors to buy and sell the crypto asset via a brokerage account. A product of this kind is expected to boost interest and investment in the Ether token.

Nevertheless, the price of ETH has remained relatively unmoved this week despite the optimistic news. A recent report by blockchain analytics firm IntoTheBlock has provided insight into why the news barely impacted the price of Ethereum.

‘Supply & Demand Balance’

According to the data analytics platform, the current supply and demand balance is one of the primary reasons why the ETH price continues to move sideways. “Large holdings are concentrated close to ETH’s current price, consolidating prices in a tight range,” IntoTheBlock said.

Source: IntoTheBlock

IntoTheBlock data shows that a total of 5.1 million ETH was acquired below the $1,600 mark to create support, while a total of 6.5 million ETH was purchased at a price above this level to establish resistance. The blockchain analytics firm concluded that traders agree to transact within a narrow range with a large concentration of ETH positions.

‘Automated Buying, Discretionary Selling’ 

Additionally, IntoTheBlock believes that while bullish traders seemed to have bought the news, “discretionary sellers” overtook the narrative not too long after. 

“A key factor behind the discretionary selling is likely to be FTX’s upcoming liquidation of reportedly $3B in crypto holdings,” the report read.

While FTX has yet to disclose when it intends to execute these liquidations, it is likely that recent activity on the exchange’s wallets alarmed the market. 

This sentiment also seems to be reflected in the performance of SOL after global payment giant VISA disclosed that it will use the Solana network for payment settlements. While the value of SOL jumped by more than 5% to trade above $20 immediately after the announcement, the cryptocurrency is back trading beneath $19.5.

With the Ethereum and Solana tokens constituting a significant portion of FTX’s holdings, it is likely that the slow market performance of these assets is driven by traders being cautious because of the impending liquidation.

ETH price continues to move sideways on the daily timeframe | Source: ETHUSDT chart on TradingView

Featured image from Unsplash, chart from TradingView