Jannat Ara

SEC Greenlights Spot BTC ETFs, Bitcoin Retests $49K, and Circle Eyes IPO: Weekly Recap

In a historic move, the U.S. Securities and Exchange Commission (SEC) approved all 11 spot Bitcoin (BTC) ETF filings, marking a watershed moment for the crypto industry. However, the journey to approval was riddled with controversy, including a misleading announcement on X that falsely claimed approval, triggering market fluctuations.

Developments Around Spot BTC ETFs:

  • The SEC’s warnings on crypto risks heightened anticipation before the official decision.
  • A misleading SEC announcement on X led to market manipulation concerns and subsequent investigations.
  • Despite the false disclosure, the SEC officially approved all 11 spot BTC ETF filings on Jan. 10.
  • Vanguard decided to block trading of spot Bitcoin ETFs, while Robinhood embraced all 11 ETFs on its platform.
  • BitMEX Research highlighted substantial inflows into the approved ETFs, with $532 million on the second day of trading.
  • South Korea’s Financial Services Commission (FSC) maintained its ban on spot BTC ETFs, prohibiting brokers from offering them.

Ethereum ETF Speculation:

  • The crypto community now speculates on filings for spot ETFs in assets like XRP and Ethereum (ETH).
  • SEC Chair Gensler remained cautious about an Ethereum ETF, emphasizing Bitcoin’s commodity status, but BlackRock’s CEO expressed openness to a spot Ethereum ETF.

Bitcoin’s Price Movements:

  • Bitcoin experienced mixed sentiments, with El Salvador’s holdings turning profitable, but a 3% dip after the SEC’s misleading statement retraction.
  • Following the SEC’s approval of spot BTC ETFs, Bitcoin retested the $49,000 level on Jan. 11, reaching $48,975.
  • The approval and increased demand led to Coinbase’s OTC BTC trade volume reaching $7.7 billion on Jan. 11.
  • Ark Invest CEO Cathie Wood projected bullish scenarios for Bitcoin, foreseeing a base case of $600,000 and a bullish case of $1.5 million by 2030.

Circle’s IPO Plans:

  • USDC issuer Circle filed for an IPO with the SEC, aiming to go public in the U.S. after a previous failed SPAC deal.

XRP’s Developments:

  • Ripple and XRP faced mixed developments, including Solana replacing XRP on the Hong Kong Virtual Asset Rating Agency (HKVAC) index.
  • Ripple initiated a buyback of $285 million worth of its shares, valuing the firm at $11.3 billion, while CEO Brad Garlinghouse stated that an IPO isn’t imminent.

The week’s events showcased the crypto market’s resilience and growing acceptance, marked by regulatory milestones, price surges, and significant industry players eyeing public offerings.

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