Wednesday circled for Bitcoin ETF decision. What happens next?

<p>All signs point to a bitcoin ETF approval this week.</p><p>A number of would-be issues published expense ratios, with Blackrock (which is obviously going to win) flagging 0.3% with a discount to 0.2% until an AUM number is it.</p><p>Kate Rooney on CNBC just now said "its looking like Wednesday for now for a bitcoin ETF decision" which shouldn't be a surprise to anyone who has been paying attention.</p><p>So what happens?</p><p>Seven years ago (back when Bitcoin was at $2500), I made a bull case for why bitcoin could rise 10x and the final catalyst I cited was a bitcoin ETF. It certainly look much longer than I anticipated and the market — in all its majesty — found many other ways to buy bitcoin along the way.</p><p>So while a bitcoin ETF would have been a huge catalyst back in 2017, it's not anymore. This run to $45,000 from $30,000 based on an ETF is flimsy. Bitcoin trading volumes have been steadily falling and that reflects flagging interest, something that's unlikely to be revived by an ETF.</p><p>I maintain this week be a sell-the-fact response, though I'm not sure if it will come:</p><ol><li>On the announcement</li><li>On the launch of trading</li><li>At the end of the first day of trading</li></ol><p>Between now and then we could be see a flurry of buying and I think a pop above $50K would be a gift to shorts. Hardening that belief has been the lack of upside in the past week despite abundant evidence of looming approval. Meanwhile, prices were smacked down 6% by this laughable <a href="https://www.forexlive.com/Cryptocurrency/bitcoin-takes-a-dive-after-laughable-speculative-report-that-sec-will-reject-bitcoin-etf-20240103/" target="_blank" rel="follow">report</a>.</p><p>Of course, it's bitcoin so anything is possible and the dovish turn from the Fed certainly won't hurt.</p>

This article was written by Adam Button at www.forexlive.com.