The Potential Impact of a Spot Bitcoin ETF Approval
A recent report by K33 Research suggests that the crypto market is not fully recognizing the potential impact of a spot Bitcoin ETF approval. Analysts Vetle Lunde and Anders Helseth argue that such an approval would lead to significant buying pressure and “enormous inflows” into Bitcoin. They believe that the current pricing of Bitcoin and other major cryptocurrencies does not reflect this sentiment. Lunde and Helseth criticize the market’s outlook on spot ETF approvals, pointing to Bloomberg analysts who now predict a 75% chance of approval within the year.
The Benefits of Accumulating Bitcoin
Lunde and Helseth assert that the current market is a “buyer’s market” and suggest that it would be reckless not to accumulate Bitcoin at its current levels. They support their bullish stance by citing a recent 2% gain in the Nasdaq-100 index, indicating a broader market risk appetite. Additionally, they predict that Ether is likely to outperform Bitcoin in the next two months due to strong momentum ahead of a futures-based ETF listing. They draw parallels to Bitcoin’s previous increase before the launch of its first futures-based ETF.
The SEC’s Decision-Making Process and Future Outlook
The SEC recently announced a delay in its decision-making process for spot Bitcoin ETF proposals. Former SEC chair Jay Clayton expressed little surprise at the delay, noting that it aligns with the timeframe set by the DC Circuit Court. Clayton emphasized the need for the SEC to differentiate between securities and non-securities offerings in the crypto landscape. He mentioned that other financial regulatory bodies are also grappling with these issues. While Clayton did not directly state whether he would have approved a Bitcoin ETF, he believes it is inevitable and that the disparity between futures-based and spot-based Bitcoin products is unsustainable.
Hot Take: The Potential Impact of a Spot Bitcoin ETF Approval
The approval of a spot Bitcoin ETF could have a significant impact on the crypto market. It could lead to substantial buying pressure for Bitcoin and “enormous inflows” into the market. Despite this potential, the current pricing of Bitcoin and other major cryptocurrencies does not reflect the sentiment surrounding a potential approval. Analysts argue that the market is underestimating the likelihood of approval and that it is a “buyer’s market” for accumulating Bitcoin. In addition to this, the SEC’s decision-making process and the future outlook for Bitcoin ETFs are subjects of interest. The former SEC chair believes that approving a Bitcoin ETF is inevitable and that the distinction between futures-based and spot-based Bitcoin products is unsustainable.
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