Spot Bitcoin ETF Approval: Will It Be a “Sell the News” Event?
The crypto community is eagerly awaiting January 10, the expected approval date for the first Spot Bitcoin ETF. The anticipation has already caused prices to recover and bullish sentiment to prevail. However, there are debates about whether this positive sentiment will continue or if it will turn into a “sell the news” event.
Understanding a “Sell the News” Event
A “sell the news” event refers to a major event that ends up causing prices to decline. In the case of the crypto market, it happens when investors expect further price increases after a significant event, such as the approval of a Spot Bitcoin ETF.
However, this is not always the outcome. There have been instances where prices actually fall after such events reach their climax.
Expert Opinions
While some argue that the approval of a Spot Bitcoin ETF could be a “sell the news” event due to already increased prices, others disagree.
Kang, an industry expert, believes that asset managers seeking approval will invest heavily in marketing and advertising. This indicates their confidence in the potential for significant growth and suggests a bullish outlook.
@ChainLinkGod also supports this view, stating that all asset managers filing for Spot ETFs are inherently long on Bitcoin. They expect these managers to actively promote Bitcoin and advise their clients to get exposure through their ETFs. This competition for dominance implies a more bullish outcome for Bitcoin.
Hot Take: The Battle for Dominance Will Drive Further Growth
The potential approval of a Spot Bitcoin ETF is not expected to be a “sell the news” event, despite concerns about already high prices. The competition among asset managers for dominance and the resulting marketing efforts suggest a bullish outlook for Bitcoin. As these managers aim to secure billions of dollars in fees, their promotion of Bitcoin and ETFs will likely drive further growth in the market.
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