Bitcoin ETF approval will drive the crypto market in 2024. Bitcoin and other cryptos will either rise or plummet after the January 10 deadline. However, who cuts before the new year will control this price action.
Reshaping Retirement Investment Strategies
Bitcoin, exhibiting over 150% growth this year, has piqued interest among investors eyeing long-term potential. Plus, its extreme volatility dissuades many from directly allocating retirement funds to this nascent asset class.
The Jan. 10 deadline is looming near and it holds significance, as it could pave the way for spot Bitcoin ETFs, tracking real-time Bitcoin prices, to enter the market. Interestingly, this anticipated approval fuels expectations among industry experts that retirement savers might gain diversified crypto investment options through their 401(k) plans, solo 401(k)s, or self-directed IRAs.
As reported by CNBC, the potential approval of spot bitcoin exchange-traded funds (ETFs) by the SEC could reshape retirement investment strategies. If these ETFs receive the SEC’s nod, they might become a part of 401(k) plans, broadening cryptocurrency access for retirement savers. This move aligns with the crypto market’s growing popularity and the rising demand among investors seeking exposure to digital assets.
However, the Department of Labor’s caution raises worries. The Department expressed concerns in March 2022 about including cryptocurrencies directly in retirement plans due to their hazards. Plus, the rise of Tether and cryptocurrencies is prompting questions about their integration into retirement strategies, albeit with limited possibilities.
The Dawn of a Transformative Era
Spot Bitcoin ETFs might revolutionize retirement investments, despite major custodians like Schwab and Fidelity refraining from direct crypto investments. Their engagement in crypto-related ventures hints at growing traditional financial interest. Approval of these ETFs could reduce risks, provide tax benefits, and ease concerns about Bitcoin’s volatility for retirement investors.
In scenarios where employers might hesitate to incorporate spot bitcoin ETFs into their 401(k) plans due to perceived risks, individuals could explore alternatives like opening IRAs accommodating these ETFs. The imminent arrival of these ETFs is expected to revolutionize retirement investment paradigms, potentially steering the strategy toward embracing cryptocurrencies as a mainstream asset class within the retirement portfolio spectrum.
What Next for Bitcoin Price?
The current Bitcoin price hovers around $43,530, stagnating without breaching the $44,000 resistance level, a crucial point for potential short-term bullish movement. However, indicators like RSI and MACD suggest a likelihood of continued sideways movement until closer to the spot BTC ETF approval date. SEC’s December 29 deadline may impact January 10 BTC ETF approvals.
Uncertainty persists over which firms might miss the deadline. Clarity is expected on approved filings within 72 hours. Any update by December 29 regarding potential approvals by January 10 could shift the market sentiment, potentially propelling Bitcoin beyond the $44,000 mark and changing the trend from neutral to bullish.