SEC Approves 11 Spot Bitcoin ETFs Boosts BTC Price
The U.S. Securities and Exchange Commission has approved 11 spot Bitcoin exchange-traded funds (ETFs). This approval saw these ETFs reach a combined volume of $4.37 billion.
Spot Bitcoin ETF Approval Impact on Bitcoin’s Price
The approval of spot Bitcoin ETFs by the SEC helped Bitcoin’s price jump to over $48,000. However, after initial excitement, the price dropped to $42,300 at the time of writing, following the approval.
Comparison to Gold ETFs
CCData’s Institutional Primer compares the spot Bitcoin ETF’s impact to the launch of the first gold ETF in the United States. This gold ETF launch saw the precious metal’s price steadily rise from $375 to $442 and reach a high of $454 after substantial inflows.
Bitcoin ETF Anticipation and Price
The report suggests that Bitcoin’s price surged with the anticipation of the ETF approval and saw a brief breakout. The price could now see a healthy correction similar to what gold experienced following its ETF launch.
Bitcoin’s Long-Term Growth Potential
As BTC competes with gold to become “the alternative asset class as the store of value,” the report concludes that it is critical to wonder about the long-term growth potential for Bitcoin.
The Price of Gold vs. Bitcoin’s Market Capitalization
Since the launch of its first ETF, the price of gold has skyrocketed to $2,050, an increase of over 445% over the last two decades. In contrast, Bitcoin currently has a market capitalization of $830 billion compared to gold’s $13.7 trillion.
Hot Take: Attainable Gold-like Price Trajectory for Bitcoin?
The SEC’s approval of spot Bitcoin ETFs suggests that, like gold, BTC’s price could experience significant growth, but long-term potential is still unclear given Bitcoin’s lower market capitalization.
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