Mounting evidence points to an upcoming spot Bitcoin ETF approval. A recent report from Coin Telegraph notes the general expectation is that approval will occur by January 10th.
That’s good news for the cryptocurrency markets and Bitcoin (BTC-USD) prices. Bitcoin has historically set the course for the broader cryptocurrency markets and is very much the case this time around. Spot Bitcoin ETF approval will send overall demand higher. In turn, it makes sense for investors to consider cryptocurrencies across the board. Investors should pay particular attention to these cryptocurrencies, which are in a strong position.
Bitcoin (BTC-USD)
It is currently a very good time to consider buying Bitcoin in light of soon-to-come ETF approvals.
Analysts from K33 are particularly optimistic about the implications of cash creation setups by ARK Invest and BlackRock (NYSE:BLK). The fact that both companies recently set up cash creation for their funds serves as a particularly strong indicator.
Spot trading volume of Bitcoin has been robust over the last week — again, a strong sign. Additionally, there are indications that institutional appetite for Bitcoin-related risk is also high at the moment. That further suggests investors of all sizes are gearing up for a substantial period of profit taking upon spot Bitcoin ETF approval.
Investors should remain aware that the likelihood of profit taking on and around January 10th will affect prices. There are likely to be dramatic price swings as a consequence of approval. There will likely be significant volatility around the date, but investors should also note that spot Bitcoin ETF approval is a long-term positive as well.
Ethereum (ETH-USD)
Generally speaking, Ethereum (ETH-USD) prices move in a highly correlated manner with the price movement of Bitcoin. That hasn’t necessarily been the case recently: At the time of writing, Ethereum prices have fallen by roughly 3% over the past seven days while Bitcoin has increased by 2%.
Regardless, I believe the pattern will continue to hold. Bitcoin, again, is highly likely to move rapidly upward as January 10 approaches. Ethereum should move upward along with Bitcoin — as it usually does. Investors should remember that Bitcoin and Ethereum are regarded as being integral cryptocurrencies and are treated somewhat differently. Most investors consider both to be legitimate long-term investments.
The point is that there are likely to be strong returns available to investors who establish a position in Ethereum before Jan. 10. Ethereum is the leader in dApps and smart contracts, which are integral to the operation of cryptocurrency and Web 3. ETH prices were much higher in 2021, and the macroeconomic picture is shifting rapidly again. It is suggestive of the possibility for Ethereum to test former highs in 2024.
Cardano (ADA-USD)
Cardano (ADA-USD) has gained a lot of followers over the past few years. The project continues to devote itself steadfastly to security and empiricism above all else. It is that devotion that has resulted in such a large following for Cardano.
Investors who put their capital behind Cardano believe the slow, steady approach will lead to the highest likelihood of long-term returns. The project is done very well in 2023 in terms of price, having more than doubled from 25 cents to nearly 60 cents at the time of writing. That said, most of Cardano’s strong performance has occurred over the last few weeks. Before that, many investors and critics had continually wondered if Cardano was ever going to live up to its billing.
The coin intends to continue to challenge Ethereum for its position and strength in the apps and smart contracts. Developers have shown strong interest in Cardano, and their participation is key to its future development. Earlier this year, a report surfaced, noting that developers were most focused on Ethereum and Cardano above all other projects. Those developers are focusing on those projects because they are the most promising, meaning they are also the most promising as investments.
Litecoin (LTC-USD)
Litecoin (LTC-USD) is a lot like Bitcoin. In fact, Litecoin is essentially identical to Bitcoin in terms of its code. There are some differences concerning overall supply in that there are four times as many LTCs available to investors, at 84 million overall. In general, Litecoin is simply Bitcoin with some minor differences in terms of code but faster speeds and lower fees. Faster speeds and lower fees are, of course, things that investors and crypto enthusiasts like.
Given that Litecoin and Bitcoin are so similar, it’s probably not surprising to understand the two tend to move in a correlated fashion. However, Litecoin tends to move in a more volatile fashion than Bitcoin does. So, when Bitcoin moves down, Litecoin tends to move downward even faster. Conversely, when Bitcoin rises Litecoin tends to rise even faster. That’s particularly important at the moment because Bitcoin prices are very likely to rise before Jan. 10. There’s every indication that Litecoin could amplify gains in a pronounced fashion.
Solana (SOL-USD)
In 2024, Solana (SOL-USD) will continue to benefit from the reputation it has built in the past few years. Solana does a lot of what Ethereum does, except at lower prices and much higher speeds. That’s exactly how Solana made its name and it’s exactly why it’s going to continue to garner investor interest overall.
Investors know that altcoins, i.e., everything not named Bitcoin or Ethereum, are not to be taken lightly. Ethereum, in particular, continues to face a lot of scrutiny. It’s always been slow and expensive. Even after switching its consensus mechanism to proof of stake in 2022, those same problems continue to plague Ethereum.
The company recently conducted its Hyperdrive Hackathon in early November. More than 7,000 participants submitted 907 final projects as a result of the hackathon. Those numbers clearly suggest that developers continue to be highly interested in Solana. Thus, it’s highly likely that Solana will continue to be developed, which will increase its overall utility and strength.
Chainlink (LINK-USD)
Chainlink (LINK-USD) is highly focused on creating the utility of smart contract interoperability. The central premise of the project is it operates a network that centralizes information. Chainlink is one of many projects focused on bringing together the data contained in smart contracts housed in disparate networks.
One of the fundamental hurdles of Web 3 is exactly that. Countless smart contracts are being created on numerous blockchains. That information is far less valuable if it cannot interact with other data.
The integration of off-chain data into smart contracts promises to speed up the evolution of Web 3. One of the more interesting aspects of Chainlink is that it allows users to operate nodes. Those node operators are essentially running the infrastructure of the network and can monetize. It’s difficult to say Chainlink is particularly well-positioned to benefit from the approval of spot Bitcoin ETFs. However, it is simply a strong project with a real utilitarian purpose. So, for that reason, it remains worth considering as an investment.
Ripple (XRP-USD)
Ripple (XRP-USD) continues to head in the right direction as 2024 approaches. This year was particularly strong for Ripple and XRP as it proved successful in its court case against the SEC. While the court victory didn’t necessarily launch XRP’s price much higher, like many anticipated, it was a milestone nonetheless.
At its heart, XRP remains a fast and inexpensive cross-border settlement token. It’s that utility that makes XRP particularly strong and noteworthy. That utility has also garnered international attention.
The Central Bank of Ireland recently approved XRP as a virtual asset service provider. Earlier in 2023, the company received similar approval in Dubai. Ripple is now legally capable of providing crypto services within those respective jurisdictions.
Again, I’m not so sure the approval of spot Bitcoin ETFs is intrinsically tied to Ripple and XRP. Bitcoin ETF approval should push XRP higher, which is generally good, but investors should simply consider the project keeps showing signs of positive momentum overall. Those wins, in addition to bitcoin ETFs, should all serve to propel prices higher.
On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
