How Much Could Approval of a Spot Bitcoin ETF Boost BTC Price?

  • Industry experts in the crypto market ecosystem continue to express optimism about the approval of a spot Bitcoin ETF.
  • JP Morgan analysts believe that the U.S. Securities and Exchange Commission (SEC) will have to approve the request to convert the Grayscale Bitcoin ETF into a spot ETF.
  • It’s a fact that ETFs backed by non-governmental assets have historically performed well in the United States. For example, the SPDR Gold Trust ETF (GLD), which was launched in November 2004, became a successful gold-backed exchange-traded fund.

How will the approval of a spot Bitcoin ETF in the U.S. affect BTC’s price? Could it be similar to the beginning of the Gold ETF?

Bitcoin ETFs May Accelerate Money Flowing into the Market

Bitcoin-BTC

Industry experts in the crypto market ecosystem continue to express optimism about the approval of a spot Bitcoin ETF. However, the landmark decision in the Grayscale case could set a legal and regulatory precedent for spot ETF approval in the United States, as previously reported by COINOTAG.

JP Morgan analysts believe that the U.S. Securities and Exchange Commission (SEC) will have to approve the request to convert the Grayscale Bitcoin ETF into a spot ETF. However, it is yet to be seen which company among BlackRock, Ark Invest, Fidelity Bitwise, and others will submit the ETF application.

Within the crypto community, there is a belief that ETF approval could bring a fresh inflow of funds into the digital asset market. Bitcoin investor Lark Davis stated that it is estimated that once an ETF is approved, between 20 to 30 billion dollars in cash investments could flow into Bitcoin immediately. For perspective, this amount could be approximately half of all BTC currently held on crypto exchanges, given current prices. Davis said:

“Estimates suggest that the approval of a spot Bitcoin ETF could bring $20-30 billion in fresh cash to Bitcoin. This would buy about half of all the coins on exchanges at current prices.”

It’s a fact that ETFs backed by non-governmental assets have historically performed well in the United States. For example, the SPDR Gold Trust ETF (GLD), which was launched in November 2004, became a successful gold-backed exchange-traded fund. After the launch of the first gold-backed ETF, the value of gold steadily increased over the years. Could the approval of a Bitcoin ETF lead to a similar trend for BTC?

BTC Price Forecast

According to estimated figures, the influx of fresh capital could potentially trigger a Bitcoin rally of at least 50% more than the current range. Michael Saylor, the co-founder of MicroStrategy and a prominent Bitcoin supporter, continues to strengthen his position in BTC by buying more, emphasizing his confidence in the asset.

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