As of December 27, Bitcoin (BTC) has surged 155.2% YTD, rebounding from the FTX collapse in November 2022. Ethereum (ETH) rose 86.1% during the same period. The crypto market’s resurgence in 2023 is driven by expectations of SEC approving crypto spot ETF filings, potentially propelling crypto into the mainstream.
Challenges emerged as the SEC hesitated due to sector reliability concerns. Pressure increased as traditional market giants entered; a federal judge ruled in favor of Grayscale Investments, criticizing the SEC’s denial.
In response to regulatory demands, Binance cooperated, demonstrating industry accountability after its CEO’s resignation and U.S. money laundering admission. On November 30, a pivotal moment occurred when the SEC sought public opinion on a rule change allowing Fidelity Investments to list and trade shares of the Fidelity Ethereum Fund.
This development opens doors for traditional finance giants pursuing crypto ETFs, fueling investor optimism. Approval speculation suggests a shift in the regulatory stance by January 2024, making it crucial to monitor major spot crypto ETF applicants.
Explore these prominent names venturing into the crypto space:
- BlackRock, Inc. (BLK):
- Applied for a crypto ETF in June, the world’s largest asset manager.
- Expected earnings growth rate: 4.2%.
- Zacks Rank #3 (Hold).
- Invesco Ltd. (IVZ):
- Initially filed for a Bitcoin ETF in 2021 but resumed the race in June 2023.
- Expected earnings growth rate (current year): -15.5%, projected to grow by 11.3% in 2024.
- Zacks Rank #4 (Sell).
As the crypto landscape evolves, monitoring these companies offers insight into potential market impacts amid growing optimism and regulatory shifts.
