Not owning Bitcoin (BTC) may soon become a risk, according to Martin Leinweber, digital product expert at MarketVector Indexes. Leinweber's comments come amid growing optimism regarding the approval of the first spot Bitcoin Exchange Traded Fund (ETF).
Martin Leinweber Expects a Rise to $50,000 Following Confirmation and a Correction Thereafter
It was reported that many asset managers who filed applications with the US Securities and Exchange Commission (SEC) submitted changes to their files. These changes include a cash creation and redemption process rather than in-kind share creation and redemption. Leinweber believes that these changes indicate that we are on the verge of seeing the first spot BTC ETF approved, which will pave the way for the launch of various other crypto-focused ETF products.
During the interview, Leinweber stated that the most suitable ETF would offer in-kind access to Bitcoin, and added: “We will take what we can get, and this is an acceptable version for now.”
“I think we'll get the in-kind version down the road as well, but if you look at market pricing and what you're hearing, I'd say there's around a 95% chance of us getting approval on January 10th. This does not mean that it will be traded on January 10th. “It'll probably take some time, then we'll see if this is a 'buy the rumor, sell the truth' or 'buy the fact' thing.”
He noted that many people said it was a “buy the truth” thing, which made him cautious:
“Because everyone is very enthusiastic about this discourse. “So I can predict that we will see a decline, and I welcome that as a healthy development because we have seen some froth in the market.”
Speaking about the situation of the BTC price in case of confirmation, the analyst added:
“We are in uncertainty right now. You have strong technical signals between $48 and $50,000 and the $38,000 area. I can imagine us getting to the $50,000 level and then having a correction. “That would be my preferred scenario.”
*This is not investment advice.