Bitcoin ETF Approval Could Be a Sell-the-News Event
Macro strategist Jim Bianco suggests that the approval of a spot-market Bitcoin (BTC) exchange-traded fund (ETF) could result in a sell-the-news event. He compares it to the initial public offering (IPO) of Facebook, which was highly anticipated but ultimately underperformed. Shares of Facebook initially went public trading at $28 but dropped to $11 despite market hype.
Bianco warns that a similar scenario could play out for Bitcoin when a spot ETF is approved. He fears that the price might experience a short rally followed by sideways or lower movement before eventually rising. This pattern was observed with Facebook’s IPO, and Bianco worries that it could happen with the spot Bitcoin ETF as well.
As of writing, BTC is priced at $37,002.
Hot Take: Potential Impact of Spot Bitcoin ETF Approval
While many are optimistic about the approval of a spot-market Bitcoin exchange-traded fund (ETF), macro strategist Jim Bianco believes it could lead to a sell-the-news event. Drawing parallels to Facebook’s 2012 IPO, he suggests that initial excitement may be followed by a period of underperformance before potential upside.
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