Even with the spot Bitcoin ETF approval odds increasing, traders are still slightly worried that the event has been priced in.
Bitcoin (BTC) price broke above $40,000 for the first time since April 2022, roughly two weeks ago, on Dec. 4. Within less than 48 hours, a rally toward $44,000 occurred, but this resistance level has proven to be stronger than expected. Traders now question if a correction down to $41,000 is the most likely scenario.
The last 16 days have seen several rejections at $44,000 and subsequent retests of the $41,000 support. Interestingly, these movements occurred as the chances of approval for a spot Bitcoin exchange-traded fund (ETF) by January increased, according to Bloomberg ETF analysts after multiple issuers amended their filings to comply with the cash redemption model demanded by securities regulators.
BlackRock, among others, updated their S-1 registration statements to exclude non-monetary payments, known as ‘in-kind.’ Essentially, the creation and redemption of ETF shares will happen in cash, rather than allowing participants to pay or be compensated in Bitcoin, although the fund itself will be able to hold the actual cryptocurrency.
