Approval of a cryptocurrency-based ETF expected on 10 Jan 2024 as crypto trading volumes reach all-time highs! What does this mean for cryptocurrency casino players? (Photo by Traxer on Unsplash)
Monthly cryptocurrency exchange trading volume surpassed $1 trillion in December, a threshold exchanges had failed to surpass in over a year.
Is this good news for crypto casino players?
If you have a casino balance in crypto, then yes! You probably also have a wallet stashed with various cryptos, and the value versus your domestic currency is improving! Sticking to the same spin bet or table game bet sizing means you risk less with more and can win more. However, keep your eyes on the market.
Despite plenty of news covering the expected approval of crypto-based ETFs, what will happen if the U.S. government shocks the world by denying the approval? It is a risky business, and can we trust the SEC? It could all just be a trick to devalue crypto. Let’s hope this isn’t the case and those who invested in crypto see another whrilwind of a bull market!
Big December for Crypto!
Crypto trading volume hit $1.1 trillion in December 2022, the highest monthly total since September 2022, according to The Block’s dashboard data. The last time monthly volumes exceeded $1 trillion was in May 2022 at $1.35 trillion.
Binance led exchanges in December, comprising 39.3% of volume at $432.7 billion. Upbit followed at 8.3% with $91.8 billion, then OKX at 8% and $87.5 billion. December is typically slow for crypto trading due to the holidays. The spike suggests optimism about impending U.S. approval of spot bitcoin ETFs and a new bull market, said Steven Zheng, The Block’s Research Director.
Where can you find out more about crypto gambling? We have our Bitcoin casino guide that gives you a decent overview of how crypto gambling works online. However, we also suggest reading our ‘cryptocurrencies in online casinos‘ guide.
ETF optimism
With traders anticipating spot bitcoin ETF approvals, Bitcoin also rallied over the weekend, jumping 5.8% to over $45,000. The largest cryptocurrency by market cap hit $45,260 on Monday morning, per The Block’s Bitcoin Price Page.
Investment bank TD Cowen believes the U.S. Securities and Exchange Commission will approve a spot bitcoin ETF by the January 10th deadline as a “political necessity.” The SEC wants to cement its crypto oversight role before Congress considers broader legislation, Cowen’s Jaret Seiberg wrote. The SEC also likely wants to avoid losing a legal challenge on bitcoin ETF denials.
10 January Approval Deadline
On January 10th, the SEC must decide whether to accept or reject spot bitcoin ETF applications from Cathie Wood’s ARK and 21Shares, the first filers. The SEC could also rule on over a dozen other spot bitcoin ETF applications by then from BlackRock, Fidelity and more.
Multiple analysts now expect SEC approval of spot bitcoin ETFs by next week. Last week, sources told Reuters the SEC may notify filers this week before a possible January 10th launch.
Bitcoin’s price has rallied in recent months, mainly due to growing optimism about SEC spot bitcoin ETF approvals bringing more institutional investment into crypto. Bitcoin currently trades at around $45,000.
TD Cowen Believes Approval is Coming!
Investment bank TD Cowen believes the U.S. Securities and Exchange Commission will approve a spot bitcoin exchange-traded fund (ETF) by the January 10th deadline as a “political necessity.”
“To us, this is a political necessity as the agency needs to cement its role as a crypto regulator before Congress considers broader crypto legislation,” TD Cowen’s Washington Research Group, led by Jaret Seiberg, wrote in a Tuesday note. “We also believe the agency does not want to lose a legal challenge to its refusal to approve bitcoin ETFs.”
On January 10th, the SEC must finally decide whether to accept or reject spot bitcoin ETF applications from Cathie Wood’s ARK Investment and 21Shares, the first filers. By then, the SEC could also rule on over a dozen similar applications from BlackRock, Fidelity and more.
TD Cowen is among several analysts confident that the SEC will approve spot bitcoin ETFs by next week. Last week, citing sources, Reuters reported the SEC may notify the 14 firms vying to issue spot bitcoin ETFs of approvals or denials as early as this week, ahead of a possible January 10th launch.
Two Main Bills In the Pipeline for ETFs
Aside from spot bitcoin ETFs, the focus has been on two Republican-led U.S. crypto bills. One regulates stablecoins federally; the other takes a comprehensive approach to the crypto market structure. Both passed the GOP-led House Financial Services Committee last July but would need Senate approval, which could prove challenging this year.
However, Cowen believes there’s an opportunity to pass a broad crypto market structure bill in the post-election “lame duck” period. Committee Chair Patrick McHenry reportedly wants this done before retiring in 2024. Cowen said that to get Senate and White House support, the SEC would need to lead on investor protections.
Cowen said this could be McHenry’s fallback on stablecoins if the market structure bill fails. But hurdles remain significant, Cowen noted, and depend on how much Republicans concede to Democrats.
Leave A Comment