David Duong, the Director of Institutional Research at Coinbase, has provided an evaluation of Spot Bitcoin ETFs and discussed the potential effects of their approval on the market. Contrary to analysts who suggest that the approval of an ETF could have a significant impact on the market, Duong claims that the approval has already been partially priced into the market.
The ETF Wave in the Crypto Industry
The U.S. Securities and Exchange Commission’s (SEC) history of rejecting numerous Spot Bitcoin ETF applications and the negative remarks made by SEC Chairman Gensler regarding Spot ETFs had diminished expectations of approval for Spot Bitcoin ETFs in the near future. However, BlackRock’s application for a Spot Bitcoin ETF in mid-June reversed these expectations.
The recent developments, including BlackRock’s ETF application, have strengthened the expectations that the SEC could give the green light to Spot Bitcoin ETFs. With the growing expectations of an ETF approval, there has been much speculation about the potential impact of Spot Bitcoin ETFs on the market.
What Impact Will Spot Bitcoin ETFs Have on the Market?
With the strengthening expectations of an SEC approval, many analysts have suggested that Spot Bitcoin ETFs could attract significant inflows of funds into the crypto asset industry over the years, which could have a significant impact on Bitcoin’s price performance. However, contrary to the expectations of most analysts, Coinbase’s Director of Institutional Research claims that the potential ETF approvals have already been partially priced into the market.
David Duong, the Director of Institutional Research at Coinbase, included an analysis of Spot Bitcoin ETF applications in the monthly report published on Thursday. The report discussed the potential impact of Spot Bitcoin ETFs on the market if approved by the SEC.
Duong presented a different perspective from the prevailing belief that ETF approvals could have a significant impact on Bitcoin’s price performance. He suggested that the potential ETF approvals have already been partially priced into the market and highlighted Bitcoin’s price performance in recent months.
The report referred to macroeconomic uncertainty and the recent performance of the crypto asset market. Duong pointed out that despite macroeconomic uncertainty, Bitcoin has exhibited stronger price performance compared to most other cryptocurrencies in recent times, attributing this to the pricing of potential ETF approvals.
