The Role of Spot Bitcoin ETFs in the Price Surge
A senior director at Moody’s Analytics, Yiannis Giokas, has shed light on the factors driving the recent surge in bitcoin’s price. According to Giokas, the impending approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is likely the biggest driver behind the price increase. Moody’s Analytics, a subsidiary of Moody’s Corp., focuses on non-rating activities.
In an email to Bitcoin News, Giokas stated that the surge in bitcoin price can be attributed to the number of applications for spot BTC ETFs that are expected to be approved by the SEC in January. He noted, “The race is heating up to launch these vehicles with large asset managers getting ready to acquire the underlying asset to offer the ETF to retail and institutional investors.”
Anticipated Approval and Wall Street Influx
Bloomberg has predicted a 90% chance of the SEC approving spot bitcoin ETFs by Jan. 10. The regulator has been engaging with exchanges and spot bitcoin ETF issuers such as Blackrock, Ark Invest, and Grayscale Investments to discuss their applications.
Industry experts, including Skybridge Capital founder Anthony Scaramucci and former NYSE President Tom Farley, anticipate a significant influx of capital from Wall Street into BTC following the launch of spot bitcoin ETFs. Ric Edelman also mentioned that financial advisors are keenly awaiting the approval of these ETFs to offer them as investment options to their clients. However, JPMorgan has warned about the potential negative impact of spot bitcoin ETFs on bitcoin prices.
Hot Take: The Impact of Spot Bitcoin ETFs
Spot bitcoin ETFs are expected to create a major shift in the crypto market and attract significant institutional investment. Their approval by the SEC could potentially lead to a surge in bitcoin’s price as asset managers rush to acquire the underlying asset and offer the ETF to investors. While some experts anticipate a positive outcome with increased capital inflow, others warn of potential downward pressure on bitcoin prices. Regardless, the launch of spot bitcoin ETFs is poised to transform the digital asset landscape and reshape the investment opportunities available to retail and institutional investors.
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