With several large investment funds submitting applications for the approval of Spot Bitcoin ETFs, many are speculating about the potential impact on the price of Bitcoin (BTC) and the overall cryptocurrency market.
In this analysis, we will explore the various scenarios that could unfold if Spot Bitcoin (BTC) ETFs are approved and shed light on the opinions and insights of industry experts.
The Growing List of Bitcoin ETFs Applicant
Among the numerous investment funds seeking approval for Bitcoin ETFs, BlackRock’s application stands out as the most high-profile development. As the world’s largest asset manager, the mere filing of their spot Bitcoin ETF application has garnered widespread attention and has led to optimistic speculation about the potential bullish impact on BTC.
Aside from BlackRock, several other significant investment funds have also submitted applications for Bitcoin ETFs. WisdomTree, renowned for its low-cost ETF offerings, filed an application in June 2023.
Additionally, Valkyrie, a specialized digital asset manager, refiled its application for a Bitcoin spot ETF in June 2023 after an initial attempt in July 2022.
However, it remains uncertain whether any of these applications will ultimately receive approval from the US Securities and Exchange Commission (SEC). Nonetheless, the fact that such significant players in the investment industry are actively pursuing Bitcoin ETFs reflects the growing interest and confidence in the market.
The PRE-RULING PERIOD
In the immediate period leading up to the ETF verdicts, the Bitcoin market could experience heightened volatility due to mounting anticipation. Traders may be compelled to engage in front-running procedures in the hopes of capitalizing on potential approvals.
However, if the initial rulings turn out to be negative, it wouldn’t be surprising to witness turmoil in the futures market and subsequent rounds of liquidations. On the other hand, a positive verdict could trigger the opposite effect.
Nevertheless, it is important to note that Bitcoin has a history of defying expectations and could potentially behave unpredictably even in the face of favorable news. All things considered, the ETF race has the potential to serve as a significant catalyst in the very short term, making for a volatile and captivating period in the market.
Experts Weigh In
In the midst of these developments, various voices within the crypto community have voiced their opinions on the matter. Preston Pysh, an author and podcaster, took to social media to suggest potential collusion between Wall Street and government regulators, insinuating that recent actions by regulatory bodies were deliberately aimed at benefiting legacy Bitcoin interests.
I'm sorry, but after watching, Blackrock, Fidelity, Citadel, Schwab and now Deutsche Bank, all apply for #Bitcoin ETFs, spot exchanges, etc. only a few days after the SEC drops a TRO on Binance and sues Coinbase… how can't you think this entire past year was a giant inside job…
— Preston Pysh (@PrestonPysh) June 20, 2023
On the other hand, Andrew Lokenauth, another commentator, believes that BlackRock’s Bitcoin ETF application could have a profound impact on the crypto market, attracting a wider pool of investors and potentially leading to increased liquidity and price stability.
BlackRock's Bitcoin ETF is a big deal for Crypto, it would open up the $BTC market to a wider pool of investors and could lead to increased liquidity and price stability $BLK's application is a sign that the SEC may finally ready to approve a spot Bitcoin ETF. The SEC has been…
— Andrew Lokenauth (@FluentInFinance) June 23, 2023
Galaxy Digital CEO Mike Novogratz has also expressed enthusiasm, believing that BlackRock’s ETF approval would be highly favorable for Bitcoin. The introduction of a Bitcoin spot ETF could instill confidence in investors, eliminate concerns related to custody and private keys, and allow retail investors to hold Bitcoin for the long term.
Drawing parallels with the history of gold and the introduction of gold-based spot ETFs, there is a possibility that Bitcoin may experience a similar price surge if history repeats itself.
