- Michaël van de Poppe warned against excessive leveraged trading and advised maintaining low-limit buy orders.
- Seyffart emphasized that this is just a registration of shares. However, this is only the initial stage. The ETF still requires 19b-4 approval and an effective, approved, and completed S-1 document for listing.
- While ETF applicants await 19b-4 approval, FOX Business reported that SEC staff met with officials from major exchanges in the Trading and Markets Division.
As Bitcoin and the broader crypto market continue to face selling pressure, analysts are expressing their views on the situation.
Analyst Warns Crypto Investors
As Bitcoin and the broader crypto market faced selling pressure on Thursday, MN Trading founder Michaël van de Poppe warned against excessive leveraged trading and advised maintaining low-limit buy orders. Van de Poppe stated in a post related to X: ‘Today has seen very significant liquidations, the largest in the last two years for altcoins. It’s not very likely that we’ll see this happen again tomorrow or the day after.’
While Van de Poppe does not expect this scenario to repeat, the Bitcoin spot market has shown a slow recovery. Simeon Hyman, ProShares’ global investment strategist, highlighted spot market issues in a recent Bloomberg interview.
He pointed out inconsistencies in Bitcoin prices on different exchanges and the risks inherent in these platforms. The strategist expressed concerns about the daily settlement processes of Bitcoin futures. These processes rely on a mix of prices, and he expressed skepticism about the practicality of cash creation and redemption mechanisms in this context. Hyman stated that the spot market is somewhat ‘odd.’
Bitcoin ETF to Create Market Optimism
A prolonged market sell-off is not expected as there is hope for the SEC to approve the first spot Bitcoin ETF. Meanwhile, Fidelity Wise Origin Bitcoin Fund recently applied to the Cboe BZX Exchange with Form 8-A. Bloomberg’s James Seyffart emphasized that this is just a registration of shares. However, this is only the initial stage. The ETF still requires 19b-4 approval and an effective, approved, and completed S-1 document for listing, explained the analyst.
While ETF applicants await 19b-4 approval, FOX Business reported that SEC staff met with officials from major exchanges in the Trading and Markets Division. An SEC spokesperson stated that if the Commission declares a registration statement effective, it will be reflected in EDGAR. Additionally, any 19b-4 orders will be published on the SEC’s website and later in the Federal Register.
Market sentiment took a hit on Wednesday, but the global crypto market cap stands at $1.72 trillion with daily losses. Currently, Bitcoin (BTC) is priced around $42,700 according to data. BTC experienced a 5% drop in the last 24 hours.
