BTC Spot ETFs have always been a hot topic in the crypto industry. It’s not much of a new issue for this year. Because there has been news about the approval of BTC ETF since 2023.
However, the approval decision from the US Securities and Exchange Commission (SEC) remains unclear.
But recently, we noticed that Franklin, Nasdaq, and Hashdex have filed registrations to operate cryptocurrency Spot ETFs and Ethereum Spot ETFs. The next question is whether the SEC approves the BTC Spot ETF. “Will it be approved or not?” but “When will it be approved?” instead. And in this article It will analyze the potential impact of BTC Spot ETF on the market.
Ryan Lee, Chief Analyst from Bitget Research comments and analyzes the approval of the BTC ETF and what will happen on January 10. “Compared to Spot ETFs, Gold as of December 2023 Gold ETF’s Assets Under Management (AUM) has reached approximately 2.09. Hundred billion US dollars Half of its AUM is in North America.
Currently, the volatility of BTC is approximately 3.6 times that of gold. If a BTC Spot ETF is approved and assuming these financial giants want to invest in BTC with the same level of risk as gold, it would require an investment of around 3-4 times that of gold. Ten billion US dollars.”
Ryan said
“In the same way Looking back at the impact of gold ETFs on the market, the first gold ETF to launch in the United States was the SPDR Gold Trust, which debuted on the NYSE on November 18, 2004. On that day, gold prices Closed at $444.3 per ounce.
The ability for institutions to invest (exposure) in gold through ETF purchases has led to capital inflows, resulting in the gold spot price continuing to increase, reaching a level of $1,666 per ounce in 2012.” We can see that the situation that happened with the gold ETF could also happen with the BTC ETF if it gets SEC approval.
Recognition and profit opportunities from governance
When the SEC approved the BTC Spot ETF, it was expected that Financial institutions in other regions will file similar operations in the United States. This is to prevent large and medium-sized financial institutions from transferring funds out of the region.
Other financial centers such as London, Hong Kong, Singapore and Tokyo are also expected to develop policies related to the BTC Spot ETF, leading to widespread adoption of the cryptocurrency. The world can
Additionally, it is possible that the definition of cryptocurrency will be expanded beyond BTC to include ETH, stablecoins, and other tokens, which would help more people. Understand the importance of cryptocurrencies
Market situation on January 10 After approval of BTC Spot ETF
Bitcoin on January 10th could reach $48,000 to $50,000 with approval of Spot ETF, according to market conditions. It is expected to be influenced by the awareness and investment associated with such ETFs if the ETF is approved. It may stimulate market demand significantly. This will push the price of Bitcoin to an uptrend.
However, future price movements will also be affected by additional capital inflows into the Bitcoin ETF. How much or how little capital comes in will play a key role in market sentiment. and price fluctuations It will determine whether the Bitcoin price will continue to rise or fall.
This event may trigger severe market volatility. And investors should closely follow the market reaction after ETF approval, including following the flow of funds. To better define investment strategies