Analysts Predict Bitcoin ETF Approval Before January 10

Analysts from JPMorgan and Bloomberg Intelligence expect Wall Street to approve a Bitcoin Exchange-Traded Fund (ETF) before January 10, 2024, despite ongoing concerns about market manipulation from the U.S. Securities and Exchange Commission (SEC).

Recently, interest in these ETFs, which provide investors with exposure to cryptocurrencies by tracking their prices, has increased. However, the ProShares Bitcoin Strategy ETF has not experienced significant growth despite an initial investment of $1 billion.

Current data shows that the ProShares Bitcoin Strategy ETF (BITO) has a market capitalization of $914.16 million and experienced a 7.86% return over the past week. For 2023, the projected dividend yield for BITO is 6.04%. The ETF’s performance has been variable, with a 1-month return of 6.79%, a 3-month return of -4.59%, and a 6-month return of -0.46%.

The absence of a spot Bitcoin ETF in the U.S. continues to draw attention, even as the SEC has approved Bitcoin futures ETFs. Experts advocate for a spot Bitcoin ETF due to notable investor interest. Recent filings from major firms such as BlackRock and Grayscale have generated optimism in the market, despite past rejections from the SEC.

In a recent interview, Gary Gensler, chair of the SEC, mentioned that about ten spot Bitcoin ETF applications are under rigorous review by different SEC divisions. He indicated that these applications are being evaluated through a long-established process.

Gensler also referred to Grayscale’s pursuit of converting its GBTC fund into a spot Bitcoin ETF after a court victory in August. He noted that, while the SEC did not contest this move, it does not assure Grayscale’s approval or influence the results of other similar applications.

Market volatility was evident following an erroneous report regarding BlackRock’s endorsement of a Bitcoin ETF. Gensler reaffirmed the SEC’s commitment to its established procedures, ensuring each application is assessed fairly.

Despite its recent gains, BITO faces challenges with low gross profit margins, and its valuation suggests poor free cash flow yield. Investors seeking detailed insights can explore various analytical products available on the market.

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