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Crypto assets have enjoyed a stellar 2023 and the new year could bring even more joy through the approval of the first batch of spot Bitcoin exchange-traded funds (ETFs). Two filings Tuesday from one potential issuer Grayscale Bitcoin Trust appear to move that closer to a reality.

Grayscale filed an amendment to its ETF application, a concession that should improve its chances of approval. Chairman Barry Silbert will also step down from Jan. 1, along with fellow board member Mark Murphy. The Securities and Exchange Commission (SEC) set a deadline of Dec. 29 for issuers to amend their applications and the flurry of activity ahead of that date is being welcomed by crypto investors.

Its been quite the year for crypto. Bitcoin prices plumbed a multiyear trough and broker Coinbase Global s stock hit a record low in early January 2023, in the depths of a brutal bear market. Bitcoin has since soared more than 150% higher, returning to levels not seen since before the worst of the 2022 selloff, and Coinbase shares have almost quintupled.

The rally really began over the summer, when BlackRock and other financial stalwarts filed for spot Bitcoin ETFs, and legal momentum built behind hopes that the SEC would approve them.

These ETFs are expected to usher in a fresh wave of investor interest. Add into the mix the so-called halvinga change to Bitcoins programmatic monetary policy that should cut token issuance next yearand gains could be supercharged.

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That traders now expect the Federal Reserve to cut interest rates multiple times in 2024 hasnt hurt, either. Cryptos still tend to trade like stocks and other risk-sensitive assets, and rate cuts would be another tailwind.

The SEC could approve the first spot Bitcoin ETF in early January. The halving is anticipated to come around April. While some analysts are doubtful Bitcoin can keep climbingthis is all priced in, they saythere is no doubt the first half of 2024 will be full of crypto catalysts.

Jack Denton and Callum Keown

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Apples hopes that a recent ruling banning it from selling several models of the Apple Watch in the U.S. could be overturned were dashed by the Biden Administration Tuesday. The issue was centered on a patent-infringement issue.

Whats Next: Apple said it is pursuing a range of legal and technical options to resume sales of Apple Watch Series 9 and Apple Watch Ultra 2, and has submitted a proposed redesign for both models for U.S. regulatory approval.

Eric J. Savitz

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U.S. home prices rose at a 4.8% annual rate in October, the fastest such gain since December 2022, the S&P CoreLogic Case-Shiller Home Price Indices reported. Home prices in 20 major cities and the broader national index are at all-time highs.

Whats Next: With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, CoreLogic chief economist Selma Hepp said. She expects most markets will reach new home-price highs in 2024, MarketWatch reported.

Janet H. Cho

Biotech M&A is back in a big way. Bristol Myers Squibb will acquire radiopharmaceutical therapeutics company RayzeBio

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Whats Next: High interest rates are probably what caused the slow start to the year. Its not a coincidence that the turnaround in the sector has come just as conditions began to turn right for the Federal Reserve to consider rate cuts instead of hikes. Many biotech stocks, particularly small ones, are reliant on borrowed capital to conduct research as they look for the next big blockbuster drug.

Ben Levisohn, Joe Woelfel, and Angela Palumbo

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Americans spent 3.1% more this holiday season than they did last year, excluding car sales, according to preliminary data from Mastercard SpendingPulse. Healthy job creation and easing inflation pressures empowered consumers to shell out between Nov. 1 and Dec. 24.

Whats Next: Retailers have seen an uptick in return fraud, comprising $101 billion in overall losses, including wardrobing, or returning used, non-defective merchandise; returning goods bought with fraudulent or stolen tender; and returned items from organized retail crime groups, the NRF said.

Janet H. Cho

Newsletter edited by Zoe Szathmary, Patrick ODonnell, Rupert Steiner

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Bitcoin Reversed Its Fortunes in 2023. Why Crypto Could Climb Higher in 2024. - Barron's