{"id":227100,"date":"2024-01-10T19:26:46","date_gmt":"2024-01-10T13:56:46","guid":{"rendered":"https:\/\/dripp.zone\/news\/approval-of-first-bitcoin-etf-nears-eyeing-major-shift-for-india-crypto-news\/"},"modified":"2024-01-10T19:26:49","modified_gmt":"2024-01-10T13:56:49","slug":"approval-of-first-bitcoin-etf-nears-eyeing-major-shift-for-india-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/approval-of-first-bitcoin-etf-nears-eyeing-major-shift-for-india-crypto-news\/","title":{"rendered":"Approval of First Bitcoin ETF Nears, Eyeing Major Shift for India – Crypto News"},"content":{"rendered":"

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The U.S. Securities and Exchange Commission (SEC) is on the verge of approving the first-ever Bitcoin Exchange Traded Fund (ETF)<\/a>. Bloomberg\u2019s senior analyst Eric Balchunas confirmed that the trading of the spot ETFs will likely begin Thursday after a final go-ahead today.\u00a0\u00a0<\/span><\/p>\n

CoinGape spoke to Rajagopal Menon, VP at Indian crypto exchange WazirX about the potential launch.<\/span><\/p>\n

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\u201cETF application approval by the SEC will mark the first of its kind regulator-backed crypto offering and facilitate a steady flow of institutional funds in the crypto industry,\u201d said Menon.<\/span><\/p>\n

Market in good spirits<\/span><\/h2>\n

The approvals will mark a monumental shift in the global financial ecosystem after a decade-long wait. And so, the market remains in good spirits despite minor losses after bogus Bitcoin ETF approval news was debunked.<\/span><\/p>\n

Menon added, \u201cThis has definitely lifted the spirits of the market, investors as well as analysts who have predicted an overall optimistic outlook for Bitcoin as well as the industry.\u201d<\/span><\/p>\n

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This regulatory endorsement is expected to open the gate for more institutional funds into the crypto market. \u201c[ETF approval] It is being touted as one of the most significant developments of 2024 alongside the Bitcoin halving since it will boost market liquidity by large margins,\u201d the VP explained.<\/span><\/p>\n

What will change for crypto?<\/span><\/h2>\n

2024 is shaping up to be a pivotal year for the crypto world, with the Bitcoin halving event on the horizon for April. Menon explained that this development, along with the approval, comes at a time when the market has grappled with liquidity challenges and subdued trading activity over the past year. <\/span><\/p>\n

\u201cWe have seen some long position selling in the last couple of weeks due to a price surge for key tokens. While this did create pressure on the market, it was a normal corrective behavior of a maturing ecosystem,\u201d Menon said.<\/span><\/p>\n

Market reactions and predictions<\/span><\/h2>\n

Initial market reactions to the ETF news are bullish, forecasting an uptick in Bitcoin prices, the exchange VP explained. However, some analysts now speculate a potential dip in prices, attributing it to tepid initial demand for the ETFs.<\/span><\/p>\n

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Menon said, \u201cEven if that\u2019s the case, it is still an optimistic move for the market because of the high level of exposure that traditional funds will have to Bitcoin.\u201d<\/span><\/p>\n

India in focus after Bitcoin ETF launch<\/span><\/h2>\n

US markets have remained an epicenter for emerging technology before Asia took over. And with the crypto launches, all eyes would be on how the Asian markets, like India, push demand for these ETPs.<\/span><\/p>\n

Menon said, \u201cFor building wealth, diversification of portfolio, this move will be a golden opportunity, especially in countries like India where the appetite for crypto investment is high.\u201d<\/span><\/p>\n

Preparing for the SEC verdict<\/span><\/h2>\n

While all eyes are on 11 ETF launches on Thursday, what if the verdict is not favorable for all the applicants?<\/span><\/p>\n

Menon explained, \u201cAnd in the off chance that the verdict is not in favor of Exchange Traded Funds for Bitcoin, the market still has the Bitcoin halving to look forward to and apply again for another round of ETF approval, maybe with less promotion on its potential impact on the market which definitely affected the price movement of the token in December 2023.\u201d<\/span><\/p>\n

Meanwhile, the SEC\u2019s impending decision today on the Bitcoin ETF stands as a watershed moment for the industry.<\/span><\/p>\n

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