Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Macro Intelligence: US SEC approves landmark bitcoin ETFs

Discover the impact of the US SEC's historic approval of 11 bitcoin ETFs on January 10, 2024. Explore what this means for Australian investors, market volatility and the future of cryptocurrency investments.

Video poster image

Article by Juliette Saly (ausbiz)

A landmark decision

In this week's edition of IG Macro Intelligence, we examine the recent approval of US-listed Bitcoin ETFs and its implications for Australian investors.

ETF approval

On January 10, the US Securities and Exchange Commission (SEC) approved 11 US-listed spot Bitcoin ETFs.

The decision came amidst controversy, following a security breach of the SEC's X account just a day earlier. SEC Chair Gary Gensler emphasised that the approval did not constitute an endorsement of the cryptocurrency.

"While we have approved the listing and trading of certain spot Bitcoin ETP (Exchange Traded Products) shares today, we did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto," Gensler stated.

Approved bitcoin EFTs

Source: Bloomberg

Crypto flurry

The approval triggered robust demand, with US$4.6 billion in shares traded on the first day. This demand drove Bitcoin's price to a two-year peak, surpassing US$49,000 per coin for the first time since December 2021.

However, this surge was fleeting, as Bitcoin's price fell during Friday's trading, leading investors to seek the next narrative and opinions among analysts are divided regarding the volatility of assets linked to spot Bitcoin ETFs.

Egor Sidelska, co-founder and director of Magnet Capital, told ausbiz that the SEC's decision was a significant milestone for the industry, and volatility can be beneficial for investments.

"This is a monumental event, probably the most significant in Bitcoin's history so far. It demonstrates Wall Street's endorsement by one of the world's largest regulators, affirming that this is now a product accessible to all," said Sidelska.

Conversely, David Rosenberg, partner at Rosenberg, cautioned investors in a note, stating that the inherent volatility of Bitcoin and similar cryptocurrencies makes them more speculative than investment-worthy.

Coinbase Global (NASDAQ:COIN), a US publicly traded company operating a cryptocurrency exchange platform, released a statement expressing confidence that "January 10, 2024, will be remembered as a pivotal moment in Coinbase's evolution and a significant step forward for the crypto economy."

Bitcoin at a two-year high

Source: Reuters

Shortly after, bitcoin retreats from two-year high

Source: Bloomberg

Australian access

The SEC's approval has simplified access for retail investors to the cryptocurrency market.

Global X is currently offering a Bitcoin ETF to Australian investors, trading on Cboe.

Mid-year, Australian regulators are expected to approve a local spot Bitcoin ETF. The Australian Financial Review reports that the ASX is poised to approve a Bitcoin ETF by Monochrome Asset Management, with Betashares preparing a similar product. Additionally, DigitalX has submitted an application to the ASX for its own product.

Experts view

Citi recommends buying Block, while Ord Minett suggests accumulating with a target price of $128 per share, indicating a 28% increase from its current level. Millennial-focused Raiz Investment (ASX:RZI) and DigitalX (ASX:DCC) also have exposure to cryptocurrencies.

Broker recommendations

Source: FNArena

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Discover how to trade the markets

Learn how indices work – and discover the wide range of markets you can trade CFDs on – with IG Academy's free ’introducing the financial markets’ course.

Put learning into action

Try out what you’ve learned in this index strategy article risk-free in your demo account.

Ready to trade indices?

Put the lessons in this article to use in a live account – upgrading is quick and easy.

  • Get fixed spreads from 1 point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
  • Protect your capital with risk management tools
  • Trade more 24-hour markets than any other provider

Inspired to trade?

Put your new knowledge into practice. Log in to your account now.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.