The cryptocurrency community remains at a standstill in anticipation of a favorable ruling on Bitcoin ETFs since the approval of these ETFs promises bumper returns and implications for every Bitcoin investor.
Recently, the SEC set an approval window between 5th and 10th January 2024 to present the final ruling on the 12 spot-Bitcoin ETF applications on the regulator’s table, including those of investment giant BlackRock and renowned asset manager Grayscale.
Bitcoins Price to Surge Powerfully Following Approval
Just within this period of intense anticipation, leading up to the January ruling, Bitcoin has already gained massively – over 150% – and surpassed the $40,000 mark around 11:50 PM UTC today, 4th December, with a 24-hour trading volume of about 15.4 billion.
While some speculators may ascribe these gains to coincidence, other Bitcoin faithful and analysts are convinced these gains are a leadup to the SEC’s favorable ruling on BTC spot ETFs, all things being equal.
However, spikes in prices of commodities after ETF approvals aren’t new at all. After the SEC gave a go-ahead to BlackRock’s Spot Gold ETF back in 2004, gold saw a mammoth price increase; upwards of 300%.
Bitcoin has already surpassed the $42K mark with a daily trading volume of 29.26B as of 11:05 PM UTC today, Nov. 4. And Bitcoin has firmly held above the $41K for the past 8 hours as of this writing by 1:17 UTC, BTC has strongly held above the 41K mark and seems to have built a support at the 41.5K mark.
If BTC proves surge this much leading up to the SEC ruling, then there’s likely to be greater activity around the cryptocurrency following ETF approvals.
Greater Institutional Adoption of Bitcoin
A potential approval of Bitcoin Spot ETFs by the SEC will be a dream come true for the crypto world, considering the absence of regulation has been one of the major factors setting back giant exchanges like Binance and their chiefs billions of dollars in fines.
Although the challenge doesn’t lie with Bitcoin itself, most people refraining from cryptocurrency investments do so because of its highly speculative nature. However, approving a Bitcoin Exchange Traded Funds could not only stabilize and increase BTC value, but also foster trust in the asset especially while trading as a regulated security.
Whitening The Gray Areas Between Traditional Finance And BTC Trading
For consumer security and integrity concerns, many traditional and state-owned financial institutions are yet to lay down their reservations concerning Bitcoin and cryptocurrency investment and trading in general. The Spot-Bitcoin ETF batch, if approved, will be the first of its kind, and may break the traditional hedges around adopting and trading BTC like stocks and other securities.
Institutions like the IMF (International Monetary Fund) consider cryptocurrency adoption over CBDCs (Central Bank Digital Currencies) inimical to both traditional state currencies and consumers at large, the ETF approval and future BTC utilities may increase the likelihood of them dropping their reservations.