The demand from institutional investors in the future of cryptocurrencies and the upcoming BTC supply cut are gaining significant attention. That’s why everyone is talking about halving and spot ETF approval. Bitcoin aiming to reach its ATH level again will also enable altcoins to reach historic highs. So, what are the predictions of experts regarding spot ETF approval?
Approval of Spot Bitcoin ETF
Investors were not as confident about a spot Bitcoin ETF before June. However, BlackRock, the world’s largest asset manager, took a stand and submitted an ETF application with only 1 rejection out of 576 applications. Meanwhile, a letter sent from the House of Representatives to the SEC increased the pressure on the SEC.
Eric Balchunas, Senior ETF Analyst at Bloomberg, highlights an important detail, emphasizing that a different phase has been entered compared to the previous period of direct rejections. And that is the dialogue.
“We believe that the active interest of the SEC in the current applications of spot Bitcoin issuers (which has never happened before) indicates a low possibility of rejection, and we see a 75% chance of approval by the end of this year.”
The regulatory authority’s more constructive approach and the relaxation that followed the victory of GBTC are rightly increasing hopes.
The Future of BTC and Cryptocurrencies
Optimism is growing, and the comments made by senior ETF experts and former BlackRock executives like Steven Schoenfeld are promising. Experienced professionals do not embrace this optimism simply because Bitcoin is great. The reason behind their optimism is the developments in favor of ETF approval since June.
On the other hand, the potential approval of a Bitcoin spot ETF can be a major catalyst for the wave of institutional investment. Yes, futures ETH ETFs had a terrible start last week. However, the number of people who have heard of Bitcoin is definitely higher than those who have heard of Ethereum. Moreover, Bitcoin carries much deeper meanings for the risk markets.
Predictions suggest that with the approval of the ETF, Bitcoin will experience a significant supply shortage. It will lead to ETF issuers ordering Coinbase to store more BTC, amounting to billions of dollars in net inflows. This means that as the supply on exchanges decreases, the price will increase even more.
Not only will it redefine investment dynamics, but these approvals can also lead to intense competition among ETF providers such as Fidelity, SkyBridge, and Valkyrie. Ultimately, this competition will lead more investors to flock to Bitcoin.
In conclusion, the experts are now focusing on when the approval will come, rather than whether it will come or not.
