Spot Bitcoin ETF Approval Could Ignite New Crypto Bull Market
Summary:
The bullish price action in the crypto market could dramatically intensify if a spot Bitcoin exchange-traded fund (ETF) is approved by the U.S. Securities and Exchange Commission (SEC). A spot Bitcoin ETF would provide a regulated pathway for institutional investors to invest in Bitcoin, potentially causing a major market fluctuation. While past applications have been rejected, the current ones have new factors like the involvement of BlackRock, the world's largest asset manager, and a court ruling necessitating the SEC to reconsider a previous rejection. This scenario has been predicted to have a 90% likelihood of approval by early January.
Recent weeks have seen a surge in the crypto market's bullish price action, fueled by optimism for the possible endorsement of a spot Bitcoin ETF in the U.S. However, this may just be the tip of the iceberg. If the U.S. Securities and Exchange Commission (SEC) were to approve a spot Bitcoin ETF, it would be a monumental event in the annals of virtual assets. This would offer institutional investors an uncomplicated, regulated route for Bitcoin exposure, which could trigger significant ripples in the Bitcoin market. As per numerous experts, the launch of a spot Bitcoin ETF could initiate a demand surge that, together with next year's Bitcoin halving, could ignite a fresh crypto bull market. The SEC has consistently dismissed all applications for a spot Bitcoin ETF, but two pivotal factors distinguish the current applications. One is the participation of BlackRock, the globe's largest asset manager, which proposed a spot Bitcoin ETF earlier this year. The other factor is the judicial directive obliging the SEC to reassess its previous denial of Grayscale’s application for a spot Bitcoin ETF, labeling the regulator's approach as "arbitrary and capricious." As per James Seyffart, an analyst at Bloomberg Intelligence, "The decision regarding Grayscale indicates that Bitcoin futures ETFs cannot be permitted to trade while claiming the same does not apply to a spot Bitcoin ETF." Hence, Seyffart believes there is a 90% chance of the SEC approving a spot Bitcoin ETF by the beginning of next year. To comprehend why the approval of a spot Bitcoin ETF is significant and its potential influence on the market, tune into the comprehensive Cointelegraph Report on our YouTube channel and don't forget to subscribe!
Published At
11/21/2023 5:00:00 PM
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