Bitcoin prices are trending bearish despite the cryptocurrency recording a revenue boost in December 2023. Bitcoin (BTC/USD) is trading at $42,279 on Monday morning, reporting a modest gain of 0.28%.
Anticipation Over First Approved Bitcoin ETF Spikes
The cryptocurrency market is currently anticipating the U.S. Securities and Exchange Commission’s (SEC) decision on the approval of the first-ever Bitcoin exchange-traded fund (ETF) in the United States. If approved, the Bitcoin ETF is expected to attract huge institutional investments and trillions of dollars over time. http://tradingview.com/symbols/BTCUSD/
Record Mining Revenue In December
According to onchain data, Bitcoin recorded mining revenue of $1.51 billion in December 2023, the highest for that month. The record revenue resulted from soaring onchain transaction fees, with some transactions recording fees as high as $40.
Impact Of ETF May Be Initially Muted
VanEck adviser Gabor Gurbacs @gaborgurbacs suggests that while the initial impact of a spot Bitcoin ETF may be underwhelming, its long-term potential is significant. Comparing with the gold market, Gurbacs notes that gold prices tripled in eight years following the launch of gold ETFs in 2004. https://t.co/ngXvD2EQDT
Bitcoin’s scarcity and halving events could lead to quicker growth compared to gold. Bitcoin ETFs could legitimize cryptocurrency for institutions and nation-states, driving long-term growth.
Potential “Sell The News” Scenario
The anticipated ETF approval raises questions about immediate and sustained increases in Bitcoin prices versus a possible “sell the news” scenario as investors take profits.