Spot Bitcoin ETF Approval: A ‘Sell The News’-Event?
The approval of a spot Bitcoin Exchange Traded Fund (ETF) has been a hot topic among traders and market observers. Many are wondering if the age-old strategy of “buy the rumor, sell the news” will push the Bitcoin price down once BlackRock, Fidelity, Invesco, Bitwise, and other financial giants list their spot ETFs on the market.
Peter Schiff, a well-known Bitcoin skeptic, questioned the excitement surrounding ETF prospects. He tweeted that once a US Bitcoin ETF is approved, there will be no more good news for Bitcoin to rally on. However, others argue that the comparison to traditional finance, particularly gold, challenges Schiff’s views.
Historical Parallels with Gold
Charles Edwards, the founder of Capriole Investments, highlighted the historical parallels between BTC today and Gold in 2004. When the Gold ETF launched during a bear market, Gold experienced a massive 350% return and entered a seven-year bull run.
After the debut of the first gold ETF, Gold surged by over 8% in the subsequent five weeks. Although there was a minor retracement of around -10%, Gold ultimately experienced a monumental rally.
BTC Community Is Divided
The Bitcoin community is divided on how the spot ETF approval will influence the BTC price. Some believe that BTC may experience a pre-emptive rally before the ETF approval becomes a “sell-the-news” event. Others emphasize the transformative nature of an ETF approval and expect significant new capital to flow into BTC.
Bullish factors for Bitcoin include the upcoming halving, potential central bank interventions worldwide, and brewing global crises. Many experts believe that those who view the ETF as a potential sell-the-news event are underestimating the positive drivers for Bitcoin’s price.
Hot Take: Spot ETF Approval Could Drive BTC Price Upwards
While there are diverse views on the potential impact of a spot ETF approval, the majority of the community remains bullish. They see it as an additional catalyst in a series of events that will push BTC’s price upwards. Only time will tell whether the approval will truly be a sell-the-news event or pave the way for further price escalation.
At press time, BTC traded at $34,612.
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