Bitcoin (BTC) returned above $43,000 on Dec. 19 amid fresh news over the United States’ would-be first spot BTC exchange-traded fund (ETF).
Bitcoin ETF excitement still simmering
After starting the week on an uncertain footing, BTC/USD swiftly gathered strength, with the Dec. 18 candle closing over 5% above the day’s low.
Later, news came that asset manager BlackRock — which is among the applicants to launch the first U.S. spot Bitcoin ETF — had changed the policy around redemptions for its product to include BTC as an option.
“An in-kind redemption of some or all of a Shareholder’s Shares in exchange for the underlying bitcoin represented by the Shares redeemed generally will not be a taxable event to the Shareholder,” the latest iteration of BlackRock’s S1 filing with the U.S. Securities and Exchange Commission (SEC) states.
The document also places new rules over the exchange of baskets of shares for cash rather than BTC, the latter subject to regulatory approval.
The SEC is due to begin making final decisions on spot ETF in early January 2024, and next month has become a make-or-break point in Bitcoiners’ diaries.
As Cointelegraph reported, various BTC price predictions hinge on successful approval, and this is now thought to be overwhelmingly likely after years of delays and rejections.
“The level of SEC engagement and back/forth/changes on the bitcoin ETF tells us this is a 99.9% done deal,” trader and investor Bob Loukas reacted to the latest developments on X (formerly Twitter).
Bitcoin trader: $50,000 possible before 2024
Between now and then, however, Bitcoin faces both the yearly candle close and various macroeconomic data releases, which could add to holiday season volatility.
Traders continue to draw lines in the sand both above and below the spot price, with a trip below $40,000 still on the cards.
In a video update on Dec. 18, Crypto Ed, creator of trading group CryptoTA, forecasted that eventuality playing out before a final push higher, potentially sending BTC/USD to $50,000 before the end of 2023.
“Let’s see later in the week how this develops,” he concluded, giving a low target of $38,000.
Popular trader and analyst Matthew Hyland is also optimistic about further upside thanks to a bullish divergence in Bitcoin’s relative strength index (RSI) versus price on daily timeframes.
#BTC confirmed this bullish divergence at the daily close earlier
— Matthew Hyland (@MatthewHyland_) December 19, 2023
Daily RSI was at 60.45 at the time of writing, having cooled from overheated levels as Bitcoin fell from its recent 19-month high above $44,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.