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⚡Spot Bitcoin ETF Approval Tomorrow🍾

Croxroad

05 Jan 2024 — 3 min read

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☄️ Crypto Community Divided

Traders, like Scott Melkor, are caught up in the whirlwind of speculation about a potential approval for a spot Bitcoin ETF on Jan. 5. While some, like Bloomberg's James Seyffart, dismiss much of the buzz as "noise," anticipating approval between Jan. 8 and Jan. 10, others, including attorney Joe Carlasare, point out that the public comment period extends until midnight on Jan. 5, making an approval before the next week seem "very unlikely."

Eric Balchunas, a senior Bloomberg ETF analyst, sheds light on the SEC's current activity, noting the final comments being provided and the impending filing of 19b-4 and S-1 forms by issuers. These forms require SEC approval before an ETF can trade, with a greenlit 19b-4 form being crucial for the spot Bitcoin ETFs effective approval.

Despite the anticipation, Scott Johnsson from VB Capital remains sceptical, questioning the possibility of simultaneous approvals unless all 19b-4 applications are already cleared. Notably, there are 14 issuers, including major names like BlackRock, Valkyrie, ARK Invest/21 Shares, Bitwise, and Fidelity, in the race for a spot Bitcoin ETF.

🦈 Marathon Digital's Remarkable December

In a groundbreaking achievement for Marathon Digital Holdings, the Bitcoin mining company based in Florida set a new production record by mining an impressive 1,853 Bitcoin in December, marking a 56% increase from the previous month and a remarkable 290% surge compared to the same period the previous year. Marathon's chairman and CEO, Fried Thiel, attributes this milestone to an 18.4% monthly boost in hash rate, reaching 22.4 exahashes per second. Notably, the company plans to further expand its mining capacity by acquiring two mining centres for $179 million, adding an additional 390 megawatts to its existing 584-megawatt output. With an ambitious goal of achieving 30% growth in energised hash rate in 2024, Marathon aims to reach 50 exahashes within the next 18 to 24 months.

This record-setting performance has not gone unnoticed in the financial markets. On December 28, Marathon briefly outshone other mid and large-cap firms on the U.S. stock market, claiming the title of the most-traded public company with a staggering $3.3 billion daily trading volume. This remarkable feat, surpassing renowned companies like Tesla, Apple, and Amazon for the day, underscores the growing significance and influence of Bitcoin mining companies in the evolving financial landscape. Marathon's success in December aligns with broader trends in the industry, as Bitcoin mining firms strategically expand operations in anticipation of potential developments such as the approval of a spot Bitcoin exchange-traded fund (ETF) and the upcoming Bitcoin halving in April.

💳 How do ETFs and Mutual Funds Compare?

When comparing ETFs and mutual funds, it's essential to weigh their advantages, considering the unique aspects of each investment approach. Both share similarities as they typically represent portfolios of individual securities, such as stocks or bonds. However, the crucial distinction lies in their trading mechanisms.

On the balanced scale, both ETFs and mutual funds act as diversified investment vehicles, offering exposure to a range of securities. This diversification can help mitigate risks associated with individual investments.

Conversely, on the unbalanced scale, a key difference emerges. ETFs, being "exchange-traded," allow investors to buy or sell shares throughout the trading day at varying prices. In contrast, mutual fund trades are executed once a day, at a single predetermined price. This distinction in trading dynamics adds a layer of flexibility to ETFs, enabling investors to react to market changes in real-time, a feature not shared by traditional mutual funds.