Bitcoin ETF Buzz: Social Media Speculation Sparks Market Frenzy

The crypto community is abuzz with anticipation as speculation mounts over the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) on Friday. Social media played a pivotal role in fueling these expectations. A tweet from Grayscale’s legal chief stating, “Just filling out some forms,” and a widely shared tweet from TechCrunch reporter Jacquelyn Melinek hinted at imminent approval.

heard from sources extremely close to the matter that the bitcoin spot ETF is going to be approved by the SEC for *multiple* firms' applications

— Jacquelyn Melinek (@jacqmelinek) January 4, 2024

Relying on sources “extremely close to the matter,” Melinek suggested the likelihood of multiple ETF approvals. This sets the stage for a potential announcement on Friday. A cryptic tweet from Grayscale’s chief legal officer deepened the intrigue, amassing 1.9 million views and 6,700 likes. It further stoked the fires of speculation.

Notably, the hashtag #BTCETF and the term “Bitcoin ETFs” are currently trending on Twitter, underscoring the community’s collective interest and excitement. The price of Bitcoin has concurrently experienced a 3.4% uptick in the last 24 hours. This recovery follows a sharp drawdown on Jan 3, according to TradingView data.

Moreover, amid the fervor on social media, trader Scott Melkor acknowledged the rumor mill operating at full steam. However, Bloomberg ETF analyst James Seyffart offered a more cautious perspective, labeling the speculation around a January 5 approval as “noise” and maintaining his expectation of approval between Jan 8 and Jan 10.

Balchunas on Bitcoin ETF

Eric Balchunas, a senior Bloomberg ETF analyst, shed light on the SEC’s current stage of providing final comments, emphasizing that issuers are poised to file their concluding 19b-4 and S-1 forms shortly. Approval by the SEC is a prerequisite for the ETF to commence trading. The sanctioned 19b-4 form is crucial for effectively supporting the spot Bitcoin ETF.

@JSeyff @EricBalchunas any news from you? 🙂

— Alessandro Ottaviani (@AlexOttaBTC) January 4, 2024

Despite social media buzz, Scott Johnsson at VB Capital doubts an ETF approval before next week. Johnsson questioned the clarity of 19b-4 applications and whether the SEC would entertain simultaneous approvals.

Moreover, In the competitive landscape, fourteen issuers, including heavyweights like BlackRock, Valkyrie, ARK Invest/21 Shares, Bitwise, and Fidelity, are vying for a coveted spot in the Bitcoin ETF. This adds an additional layer of excitement and uncertainty to the unfolding narrative.

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