Spot Bitcoin ETF Approvals: When, Not If
The approval of spot Bitcoin ETFs by the SEC is expected to happen soon. The SEC issued final comments to applicants and asset managers have been submitting responses. However, the question remains whether this official approval will cause a buy or sell-the-news event for Bitcoin prices. It’s possible that the news has already been priced in due to high expectations of ETF approvals.
Bitcoin ETF: Buy The News Event
Alex Becker, CEO of Hyros, believes that the ETF approval is not a sell-the-news event because of self custody. Many individuals and institutions are not comfortable self-custodying large amounts of money. Therefore, the approval would mark the beginning of a steady flow of funds into Bitcoin from the world’s largest wealth holders.
Other experts, including analysts from CryptoQuant and Jurrien Timmer, Fidelity’s director of global macro, share a similar view but acknowledge that it’s not a simple yes-or-no question.
Hot Take: Impact on Bitcoin Prices
The approval of spot Bitcoin ETFs by the SEC is highly anticipated in the crypto market. While some believe it could lead to a sell-off as investors take profits, others argue that it will result in a steady inflow of funds from institutional investors who prefer not to self-custody their assets. Ultimately, only time will tell how the market will react to this significant development. Regardless, it signifies growing acceptance and integration of cryptocurrencies into traditional financial systems.
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