Bitcoin hung on to a retreat while investors mulled the implications of regulators possibly meeting expectations and allowing the first US exchange-traded-funds (ETFs) to invest directly in the token.

Over the past 24 hours, Bitcoin lost 2.4%, to trade at $42,400 as of 10:31 AM in Singapore Wednesday. So far this year, Bitcoin is up 156%, largely off bets that once ETFs are allowed to invest directly it will create a wave of fresh demand.

One of the factors being considered is if, should the ETFs be given the green light, there would be a wave of profit-taking, as encapsulated in the phrase investors “buy the rumor and sell the news.” In other words, it is still unclear if there is significant interest in the spot ETFs which are being planned by firms like Blackrock Inc. and Fidelity Instruments.

According to Nic Carter, founding partner at Castle Island Management LLC, in an interview with Bloomberg Television, the markets are “almost certain” that spot Bitcoin ETFs will be given the green light by the US Securities and Exchange Commission before the 10th of January. He said the new funds would serve to increase the base of crypto-investors in the medium term, although he conceded there could be a “news selling event” in the more immediate period.

Bitcoins losses were less than smaller tokens like Avalanche and Solana over the past 24 hours, as even mem-favorites like Dogwifhat fell off. One asset which bucked the trend was BNB, the token of the Binance exchange, which saw a 10% rise.

The rise in Bitcoin this year has also benefitted from the expectation that interest rates will soon begin declining in the US. The rally has partly repaired the damage done in the crash of 2022. However the asset is still far short of its record 2021 value of nearly $69,000.