Bitcoin hovers at 21-month high ahead of imminent spot ETF decision by SEC: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, 3iQ’s Mark Connors and eToro’s Callie Cox, discuss what could happen to crypto markets once a decision on spot bitcoin ETFs is revealed.

Chapters:
00:00 – CNBC Crypto World, Jan 9, 2024
0:25 – Bitcoin soars
1:23 – The headlines
4:55- ETF decision imminent

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Bitcoin hovers at 21-month high ahead of imminent spot ETF decision by SEC: CNBC Crypto World

Today Bitcoin trades at its highest level in nearly two years as the deadline for spot Bitcoin ETFs approaches plus Toro’s Cali Cox and three iq’s Mark Connors break down what could happen to crypto markets if those spot ETF applications get the go-ahead welcome to cnbc’s crypto world I’m Mackenzie sigalos crypto prices

Mixed as we’re just hours away from the sec’s first deadline for a decision on spot Bitcoin ETFs among this latest batch of applications now that’s tomorrow January 10th and it is the final deadline for the application from Arc 21 shares that the SEC could approve all the pending applications from 13

Asset managers all at once as of noon Eastern Bitcoin climbed more than 4% inching closer to the $47,000 level after it crossed that Mark yesterday this morning the cryptocurrency traded at its highest level in nearly 2 years ether meanwhile traded flat and salana climbed more than 6% Crossing $100 once again crypto

Focused stocks including coinbase micro strategy and miners marathon and Riot all in the red as of no Eastern with coinbase dropping the most by more than 3% now there is one exception the grayscale Bitcoin trust which saw a 2% pop okay let’s talk about the top stories digital currency group claimed

Last week that it had paid off its loans from crypto lending firm Genesis but dtor say that that’s not true the group made the allegation in a filing yesterday the first business day after dcg took to X to announce its payment of all short-term loans from Genesis now

According to that Court filing dcg still owes more than $26 million for interest and late fees on top of a Bitcoin payment that is yet to be determined the filing states that quote the dcg entities have not satisfied their obligations in full pursuant to the partial re payment agreement and

Continue to owe the debtor Estates and their creditors significant sums of USD and BTC we reached out to dcg but did not immediately hear back next a new mysterious nonprofit group backed by the crypto industry is making moves to try and influence Congress ahead of the 2024 elections according to records uncovered

By CNBC the cedar Innovation Foundation which was incorporated in Delaware in April has launched advertisements against at least one powerful lawmaker who’s up for reelection and quietly hired a group of strategists to fight on its behalf the cedar Innovation Foundation doesn’t publicly disclose its donors or say on its website who runs

The organization or where it’s located according to people familiar with the matter Cedar Innovation is being heavily funded by crypto industry players with coinbase likely to write a check for the group by the end of the year a coinbase spokesperson declined to comment about the potential funding and pointed to

Public remarks by Executives in a post last month on X coinbase CEO Brian Armstrong said quote the crypto industry has a large War chest now to elect Pro crypto candidates in 2024 referring to a recent donation the company made to a new superpack according to an analysis

By Reuters crypto group spent more than $18 million on lobbying in 2023 all right back to spot Bitcoin ETFs for our main story today in the final hours before a decision from the SEC asset managers including Black Rock Arc 21 shares Vanek Wisdom Tree and others filed updated documents coindesk

Reported that the SEC sent comments to prospective issuers just hours after the asset managers filed documents yesterday which explained fees for their proposed ETFs today’s updated filing suggest that the companies were among those that received feedback from the agency the updated filings show Invesco and Galaxy dropped fees to. 39% from the earlier

59% joining the majority of asset managers who disclosed fees in that lower range this morning John Palmer sio digital president joined cnbc’s squawkbox to discuss the latest developments in the approval process for spot Bitcoin ETFs the CBO is one of the exchanges that will list those ETFs I

Think you’ve seen quite a lot of uh progress made really last couple weeks even yesterday we you know we saw some back and forth between the commission and the issuers on the s1s um so I think that’s good sentiment right I mean progress here is good you’re seeing the

The the agencies engage you’re seeing the issuers engage and and all the filings from the exchanges are all up to date at this point from what we can see today crypto worlds tanan mckel spoke with etoro investment analyst Cy Cox and the director of research at 3iq Mark

Connor about what to expect for crypto markets ahead of the much anticipated decision on those spot ETFs obviously we need to talk about the Bitcoin ETF that has been the story but it really is the story of the week this week I want to talk about markets today

To start though Bitcoin looking little changed right now as I you know I guess investors are sort of in weit and see mode with the ETF status but altcoins um down kind of across the board with a couple of exceptions I’ll go to you for this one cie why what’s up with the

Crypto market today well first of all I think the Bitcoin ETF is the story of the year and I know the year has only been a few days but um it’s one of the main major catalysts we’re looking at in the crypto space for 2024 thinking about

Today though when you have to remember yes the Bitcoin ETF uh conversation is exciting but at the same time I mean crypto markets have rallied strongly since the grayscale decision happened in August that was the that was the real moment where uh the crypto industry realized that a Bitcoin ETF could

Actually happen uh so over the following days and weeks we could see a crypto Market that you know has trouble digesting in this news now um that it looks like we’re getting it um and that might be the reason why we’re seeing uh the you know less positive sentiment in

Altcoins especially because this is a Bitcoin story and with interest rates so high investors have to choose where they’re putting their money uh Mark anything to add to that agree I love it so t i I love how you said you know right now what’s going on with allcoins and then immediately C’s

Like well wait a minute let’s go back to the August decision and see I feel like you know people in Bitcoin or people who are um focused on this really look at judge Ralph’s decision as the most underappreciated uh contributions to bitcoin’s adoption so that’s one reason

Why I think to answer your question about altcoins in general or the digital asset industry it’s going to be materially higher in terms of adoption and price because the markets are still digesting the language in judge Ralph’s August 29th decision why the SEC did not Appeal on October 13th and why they

Spent the holidays engaging with those 13 people so let’s talk a little bit more about that ETF we know that there’s this January 10th deadline coming up and I’ve had so many conversations about what to expect on day one on day 100 what the market reaction is going to be

Is there going to be a pop or is it going to be a little bit tepid um what are you expecting on day one Mark day one I expect to pop I don’t think the ETF is priced in for reasons we can talk about um the driver of price

Now I think according to our head Trader is because of uh prep’s preferred um premium over spot is pretty high right now so you have some speculators driving it but that’s not a lot of volume it’s it’s more at the margin so the real volume has not entered uh the Bitcoin

Space we can see that uh so that’s why I think we can and I think I said it to you um at the end of last year 45 to 55,000 on the announcement and I’ll stick to that and Callie in terms of impact to the Bitcoin price and the

Broader crypto Market reaction as well as you know maybe what that looks like in Crypt related stocks what are you expecting to see um you know on day one if you like but even you know more in the medium term how do you expect to continue to see that impact that impact

Reflected in these different assets yeah well I think bark is right if we still haven’t seen I mean we’ve only scratched the surface of what uh the impact could be on bitcoin from this new essentially this new door opening up to a whole new wave of investors I’m not

So sure if we’ll see the impacts in the first few days I mean selling the news is definitely a phenomenon we see over and over again in stock and crypto markets so we’re telling customers not to get too excited here you know really keep your emotions in check especially

If you see bitcoin price prices slide but over the months and even over you know years that we have in front of us I would not be shocked to see um you know at minimum you know Foundation put into bitcoin’s price because we do we could see more of those long-term investors

Utilize the ETF to get that exposure to crypto um to be clear I think Traders could benefit from the ETF as well um I think you’ll see your fair share of Traders versus holders or hodlers but at the same time I think you know especially with the financial advisor

Space warming up to crypto you’re going to see more of those long-term investors which could set that base and help the price find higher highs you know looking at the different types of investors in the market the retail versus the institutions and you know how much of it

Is coming from the advisor space what do you expect to see in terms of initial inflows I mean I I’m assuming that a bunch of people are not just putting it all in on day one one um how do you expect to see that play out overtime

Mark uh I taken a page from what Cali just said about uh counseling caution to investors not to get too nervous if all of a sudden um the price drops 8,000 uh a couple days after because of a lack of flows that people were expecting that definitely is a possibility we know that

Um the one month 3 Monon six Monon Outlook will be dictated by exactly what you said advisors that are going to be growing demand so if if I had to rank order where flows come from they’ll come from captive funds at Fidelity Black Rock multi-asset funds where they can

Roll in a commodity like a digital asset commodity like Bitcoin that’s captive money no marketing they just change a word you know they they just change the allocation JP Morgan has those funds Black Rock has them we have them everyone a lot of people have those types of

Funds that can happen immediately say the first month or even the first week later on though registered investment advisers and we we have a call later today and I know that c you probably your wires are firing up too on the phones people saying how do I get 401K

Money how do I get Bitcoin into 401K is it allowable those conversations are happening and that’s really where in Canada we saw a lot of our initial demand was in the retirement account space so that’s where and that’s not going to happen day one but that’s like

As cie said that’s going to be the persistent demand that you see over time at least that’s what I think we know that the ETF is not the only driver of price right now but it is the most significant one um so let’s assume that a Bitcoin ETF does get approved this

Week There’s a market reaction and like I said it could be taid and it could be ey Poppy but a little bit further out um at what point does this existence of this new product start to drop off as um a catalyst and just uh kind of move to

The background how long can this run as a catalyst I guess KY yeah I think that’s a question of attention and degrees and what I mean from that is we have a lot of catalysts to look at when it comes to the crypto markets this year we have the Fed

Possibly eyeing rate Cuts as soon as March we have the Bitcoin having coming up around April um we have new corporate accounting rules which is very nerdy of me to bring up but um there are new fbe rules out there that could make it easier for companies to hold an account

For Bitcoin and other crypto assets so there are a lot of good storylines to consider when you’re thinking about Bitcoin and the Market’s attention could change from here to there depending on the headlines but the Bitcoin ETF interest I think will always be there um it’ll always be an undercurrent uh to

Consider consider when it comes to you know different you know different Catalyst to consider and how bitcoin’s price moves we could see more headlines from that front I mean we still so know so little at this point feels like we know so much but so little at the same

Time we don’t even know which ETFs will hit the market so depending on the Innovations we see on the ETF side the uses of that ETF um we could see it come back in and dominate flows from time to time okay that’s all for crypto world

Today we will be back again to tomorrow with the latest on the SEC and potential spot Bitcoin ETFs we’ll see you Then