Unpacking the ETF Approval and Its Market Impact
Recent statements from Fed Chairman Jerome Powell confirm easing inflation could enable rate cuts in 2024, sparking a risk-on rally. Cryptocurrencies likewise rebounded, regaining lost ground. But the big bang awaits pending Bitcoin ETF approvals, expected by early 2023.
When granted, these SEC decisions promise to unlock enormous capital inflows currently sidelined in pensions, endowments and managed funds. As allocators like BlackRock reshape portfolio construction to include crypto, the resulting supply shock could trigger violent repricing.
Countdown to Critical Mass
The deadline for a flurry of Bitcoin ETF judgements falls between January 5th to 10th. Additional meetings between the SEC and sponsors like Fidelity signal preparedness on both sides. An extension remains possible but diminishingly likely.
Once the first is approved, a herd mentality may take over, with asset managers stampeding to access this blossoming asset class. The ultimate fallout depends on subsequent allocation percentages. But even minor crypto portions of multi-trillion dollar portfolios imply profound price impacts.
Racing Towards the Singularity
As nation states likewise onboard Bitcoin to modernize economies and capitalize on its inscription of energy, the pace of hyperbitcoinization accelerates. Advanced economies thus drain liquidity from fiat regimes falling behind the curve. The black hole intensifies, warping financial gravities until the legacy model irrevocably crumbles.
In the grip of this event horizon, decentralized lifeboats may offer escape. Strapping oneself to the mast offers stable passage through the gathering storm. Thus prepared, clear skies await rediscovery on the other side.
Thank you for reading “All Eyes on Bitcoin ETF Approvals – Seismic Impact Awaits“.
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