The crypto market is buzzing with anticipation as the U.S. Securities and Exchange Commission (SEC) is expected to approve the first spot-Bitcoin exchange-traded fund (ETF) by mid-January or sooner. This would open up digital currency investing to institutional and regular investors, creating a huge potential market for crypto assets.
According to Bloomberg Intelligence, the spot-Bitcoin ETF market could reach $100 billion over time, with the participation of respected heavyweights such as BlackRock, Fidelity, and Invesco. These firms have filed applications for Bitcoin ETFs that would directly buy and sell the cryptocurrency, unlike the existing Bitcoin futures ETFs that track the price of Bitcoin contracts traded on the Chicago Mercantile Exchange.
The approval of spot-Bitcoin ETFs is seen as a major breakthrough for the crypto industry, as it would offer investors a more convenient and cost-effective way to access the largest and most popular digital asset. It would also boost the legitimacy and adoption of Bitcoin, as well as other crypto assets that could follow suit.
The anticipation of the SEC’s decision has driven the latest rally for Bitcoin, which has surged by 30% in the last month, touching yearly highs before backtracking.
The Crypto Market is Anticipating the SEC’s Decision on the First spot-Bitcoin ETF
Many analysts attribute the recent price increase to the looming ETF deadlines, as well as the growing demand from institutional and retail investors. CoinShares reports that there has been a consistent increase in the inflow of investments into digital assets.
Over the past eight weeks, these inflows have been uninterrupted, with the last week alone seeing an addition of $176 million. This steady growth has resulted in a total inflow of $1.32 billion since the beginning of the year.
Over the past eight weeks, Bitcoin has experienced an inflow of $155 million, which accounts for 3.4% of the total assets under management. The analytics firm IntoTheBlock has noted a positive trend in the cryptocurrency market, with fresh capital entering the market and consistent accumulation by long-term investors.
Institutional interest in Bitcoin, particularly from entities based in the United States, has shown a noticeable uptick over the previous month. At the time of writing, Bitcoin was trading at $37,439, up 2.11% in the last 24 hours.