Anthony Scaramucci Speculates Bitcoin ETF Approval by Next Week

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In an insightful speculation, renowned financial analyst Anthony Scaramucci suggests that the cash-based Bitcoin Exchange-Traded Fund (ETF) approval could be just around the corner.

The Shift in SEC’s Stance

According to Scaramucci, this significant development in the cryptocurrency sphere might be announced as early as next week, a strategic move to coincide with the holiday season and, thus, potentially, fly under the radar.

The journey to launching Bitcoin ETFs in the United States has been a long and winding road, with expectations set for a mid-to-late January 2024 debut. However, the real intrigue lies in the operational framework of these ETFs, especially given the U.S. Securities and Exchange Commission’s (SEC) insistence on a cash-only transaction process. This requirement from the SEC deviates from the traditional in-kind redemption method and is perceived as adding unnecessary complexity and potential costs for retail investors.

The change is partly driven by recent legal challenges that questioned the extent of the SEC’s authority over digital assets. The resolution of the final obstacle – choosing between “cash only” and “in-kind” transactions – has seen all ETF providers aligning with the SEC’s preference for a cash-only approach.

Strategies and Expectations

As the market braces for the SEC’s approval, QCP Capital has shared insights into Bitcoin’s potential market movements. The firm anticipates that Bitcoin could face resistance in the $45,000 to $50,000 price range, with a possible temporary drop to around 36k, before resuming its upward trajectory.

Amidst this volatility, they suggest that existing Bitcoin investors might consider selling covered calls to leverage the heightened market forwards and volatilities. Additionally, buying out-of-the-money puts could be a strategic move to navigate the potential post-ETF dip.

QCP Capital remains optimistic about the long-term trend for Bitcoin, especially leading into the anticipated Bitcoin halving event. Bitcoin has seen a 1.5% increase in the past twenty-four hours at press time, reaching $44,423. Scaramucci’s theory, combined with the market analysis from QCP Capital, paints a picture of a crypto market at the cusp of a significant change as we head into a new year.