Spot Bitcoin ETF Approval Unlocks New Demand for BTC
The recent approval of spot Bitcoin ETFs by the SEC in the USA is expected to bring a wave of new demand for Bitcoin (BTC). This approval allows non-web3 savvy retail and institutional investors to easily access direct exposure to BTC. On the first day of trading, spot Bitcoin ETFs attracted approximately $2.2 billion in demand, indicating strong early interest.
Supply Shock and Macro Factors Support BTC
In addition to the Bitcoin ETF approval, the BTC market is also experiencing a looming supply shock. In April, the issuance rate of Bitcoin to network validators will be halved, reducing sell pressure. Furthermore, macro factors such as the expected start of interest rate lowering by the US Federal Reserve are likely to support crypto this year. The combination of Bitcoin ETF approval, the upcoming halving event, and a potential rate-cutting cycle by the Fed create a bullish narrative that could drive BTC above $100,000.
Coins That Will Benefit from Spot Bitcoin ETF Approval
Ether (ETH)
Ether (ETH), the native cryptocurrency of the Ethereum blockchain protocol, is expected to benefit greatly from spot Bitcoin ETF approval. Major ETF providers like BlackRock have already filed for spot Ethereum ETFs, and it would be difficult for the SEC to not approve similar products after approving spot Bitcoin ETFs. Unlike some other cryptocurrencies labeled as securities by the SEC, Ether does not have this label. ETH has already seen a 17% increase in price this week and is trading near its highest levels since May 2022.
XRP (XRP)
XRP was labeled as a security by the SEC in 2020 when Ripple Labs was sued for issuing it through an unregistered securities offering. However, Ripple Labs has gained momentum in the lawsuit, with a judge ruling that XRP may not necessarily be a security. If the lawsuit ends with an SEC defeat in 2024, ETF providers may interpret this as confirmation that XRP is not a security and file for spot XRP ETFs. While XRP traders focus on the lawsuit, ETF optimism could become an important narrative.
Litecoin (LTC)
Litecoin, often referred to as the digital silver to Bitcoin’s digital gold, could benefit greatly from ETF optimism. Litecoin is widely viewed as not a security in the US and is one of the few cryptocurrencies traded on EDX Markets, a platform compliant with SEC regulations. As Litecoin’s market cap grows and the bull market progresses, ETF providers may jump in at any moment. With spot Bitcoin ETFs approved, there would be no reason for the SEC to block a spot Litecoin ETF.
Altcoin to Consider – Bitcoin ETF Token ($BTCETF)
In addition to Ether, XRP, and Litecoin, a newly launched altcoin called Bitcoin ETF Token ($BTCETF) offers strong upside potential. This altcoin is designed to provide traders with exposure to milestones related to the launch of spot Bitcoin ETFs through transaction tax tweaks and a burn mechanism. BTCETF backers believe that SEC approval could easily double or triple Bitcoin prices in 2024. The altcoin currently has room for significant growth according to crypto analyst ClayBro.
Hot Take: Potential Gains Await Coins Post-Bitcoin ETF Approval
The recent approval of spot Bitcoin ETFs by the SEC is expected to unleash new demand for BTC. While BTC itself stands to benefit significantly, other coins such as Ether (ETH), XRP (XRP), and Litecoin (LTC) are also poised for gains. Ether, being the native cryptocurrency of the Ethereum blockchain, has already seen an increase in price and could continue to rise with the potential approval of spot Ethereum ETFs. XRP, which has been labeled a security by the SEC, may see increased optimism if the ongoing lawsuit ends in an SEC defeat. Litecoin, often considered a non-security, could also benefit from ETF optimism as its market cap grows. Additionally, a newly launched altcoin called Bitcoin ETF Token ($BTCETF) offers traders exposure to the milestones related to spot Bitcoin ETF launches and has significant growth potential.
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