A Big Week for Bitcoin ETFs: Major Players Eyeing Approval
Major Level Comes into Play Once Again: $30K in the Spotlight.
The world of finance is buzzing about Bitcoin ETFs, and some big names are right at the forefront! Companies like BlackRock, Bitwise, Van Eck, and Wisdomtree are all in the mix, each vying for that much-coveted approval. But one company, ARK 21Shares, might just have a slight advantage. They’re up for their second approval deadline before the others, which could mean they’re the first off the starting line.
But, as with all things financial, it’s not as simple as it sounds. While the excitement is palpable, there are also concerns about market manipulation, liquidity, and investor protection. Because of these worries, some of these Bitcoin ETFs might face delays or even come to a screeching halt. The Securities and Exchange Commission (SEC) is the big decision-maker here. They’re set to make a call on the joint ARKB fund by ARK Invest and 21Shares on Aug. 13. Although many expect them to push it back, Ark CEO Cathie Wood gave a little insider info in a recent interview, hinting that the SEC might be playing it smart by giving multiple approvals at once. We’ll have to see!
And speaking of changes, Bitwise has just thrown in a curveball. On Aug. 10, they rebranded their BITC fund. Originally a Bitcoin futures ETF, it’s now morphing into a combo Bitcoin and Ether fund, a move also made by Valkyrie earlier in the month.
Lastly, here’s a cool titbit: The top 15 ETFs of 2023 all have a bit of crypto and blockchain in them. With returns as high as 227% (Valkyrie Bitcoin Miners ETF) and 182% (VanEck Digital Transformation ETF – DAPP), it’s clear why they’re the talk of the town.
So, keep your eyes peeled, because the world of Bitcoin ETFs is heating up and we may have an approval sooner rather than later!
Chart Analysis – BTC/USD
Throughout 2023, the most prominent level for Bitcoin was $30,000. It acted mostly as resistance but once the bulls managed to break it, the move did not continue north as expected. The last move above $30K occurred in late June and was followed by an entire month of slow, ranging movement above the level, but without notable upside.
At the moment, it seems like this level is acting as resistance once again. On Tuesday, Bitcoin had a bullish day and rose to touch $30K only to be rejected lower. Taking a look at the chart below, we can see that the 50-day Moving Average and the upper Bollinger Band overlapped with the mentioned level, effectively creating a confluence zone of resistance.
What’s next? Well, that’s a tricky question because volatility has been very low since late June and price action has been jerky, to say the least. The things to keep an eye on are the bullish trend line, which (if broken) could lead to a drop into $28,500, and the “elephant in the room” – $30,000 – which (if broken) could trigger further upside. The approval or disapproval of the ETFs mentioned earlier could also have a major impact.
