Bitcoin ETF

Bitcoin

Spot

The potential approval of multiple <a href="https://coingape.com/markets/bitcoin-price-eyes-50k-backed-by-spot-bitcoin-etf-euphoria-and-btc-halving/" rel="noopener noreferrer nofollow">Bitcoin spot exchange-traded funds (ETFs)</a> by the Securities and Exchange Commission (SEC) is currently one of the hottest topics in the cryptocurrency market, with most investors keeping a close eye. However, before diving into the implications of such a monumental decision, let’s unravel the concept of an ETF and its significance in the crypto realm.
<h2 id="strong-what-is-an-etf-strong">What is an ETF?</h2>
An ETF is exactly how it sounds; an investment fund traded on stock exchanges, much like stocks. It tracks an asset or a group of assets, allowing investors to diversify their investments without owning the actual assets. In the crypto market, a Bitcoin ETF replicates the price of Bitcoin, offering investors exposure to the BTC price movements without the procedure of actually managing the cryptocurrency.
<h2 id="strong-the-ripple-effect-of-futures-etf-approval-strong">The Ripple Effect of Futures ETF Approval</h2>
<img decoding="async" src="https://s3.tradingview.com/snapshots/u/U5SRjmmo.png" alt="TradingView Chart">Source- Tradingview
In October 2021, the SEC approved the first <a href="https://coingape.com/proshares-bitcoin-futures-etf-on-track-to-break-new-record/" rel="noopener noreferrer nofollow">Bitcoin futures ETF</a> which was Proshares Bitcoin Strategy ETF (BITO) listed on the New York Stock Exchange. These futures ETFs are based on Bitcoin futures contracts- which are an agreement to buy or sell a specific amount of Bitcoin at a predetermined price at a specified time in the future.
As a result, the crypto market witnessed a significant recovery through October registering a 63% monthly gain, and bolstered the buyers to reach a new all-time high of $68,789.
<h2 id="strong-spotting-the-difference-with-bitcoin-spot-etfs-strong">Spotting the Difference with Bitcoin Spot ETFs</h2>
A Bitcoin spot ETF directly reflects the current price of Bitcoin. It involves the actual purchase of Bitcoin, thereby exerting a more direct influence on its supply and demand dynamics. The approval of such ETFs would mark a significant leap forward, as it indicates a higher level of trust and integration of Bitcoin within regulated financial systems.&nbsp;
<h2 id="strong-what-it-means-for-bitcoin-price-strong">What it Means For Bitcoin Price</h2>
Many investors anticipate that the SEC’s nod could trigger a bullish rally in the Bitcoin market, as it would represent a significant endorsement of Bitcoin’s legitimacy as a financial asset. This will potentially unleash a new wave of institutional investment which is expected to increase liquidity and stabilize the BTC price.&nbsp;
Thus, with better confidence and avoiding the technical complexities of buying and storing digital currencies, more retail investors can approach the crypto market.
<h2 id="strong-will-bitcoin-rally-with-the-spot-etf-approval-strong">Will Bitcoin Rally with the Spot ETF Approval</h2>
In June 2023, the cryptocurrency market experienced a significant surge, largely influenced by the potential impact of Bitcoin exchange-traded funds (ETFs). This optimism was fueled by several prominent asset management firms submitting their Bitcoin ETF applications. This led to the BTC price jumping from $25,000 to $31,000 in just two weeks, with altcoins also gaining momentum.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 New Research note from me today. We still believe 90% chance by Jan 10 for spot <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> ETF approvals. But if it comes earlier we are entering a window where a wave of approval orders for all the current applicants *COULD* occur <a href="https://t.co/u6dBva1ytD" rel="noopener noreferrer nofollow">pic.twitter.com/u6dBva1ytD</a>
 — James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1722321412218638632?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 8, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In a recent development, Bloomberg ETF analysts James Seyffart and Eric Balchunas pointed out a crucial <a href="https://coingape.com/btc-price-surges-to-36500-as-bitcoin-etf-approval-window-opens/" rel="noopener noreferrer nofollow">window starting November 9th to 17th</a>, within which the SEC had the opportunity to approve up to 12 spot Bitcoin ETF filings- including Grayscale’s GBTC trust conversion but emphasized it was only a possibility.
They noted that while the decision deadline for all applications is November 17, the SEC might decide on nine of them any time before January 10, marking a pivotal moment for the crypto market.
<h2 id="strong-impact-on-the-crypto-market-in-general-strong">Impact on the Crypto Market in General&nbsp;</h2>
The approval of Bitcoin spot ETFs would likely have a cascading effect on the broader crypto market. Other cryptocurrencies could also see increased investment, as the approval would validate the crypto sector in the eyes of skeptical investors. A diversified range of crypto ETFs could emerge, offering exposure to various digital assets and blockchain technologies, further cementing the industry’s legitimacy
<h2 id="strong-what-happens-if-not-approved-strong">What Happens if Not Approved</h2>
If the SEC decides against approving these spot ETFs, we may witness an initial wave of disappointment, possibly leading to short-term price dips. However, the resilience of the crypto market has been tested numerous times. Although momentarily disheartening, it is unlikely to derail the long-term journey of this digital asset.
<h2 id="strong-bitcoin-price-prediction-historical-data-hints-end-of-downtrend-strong">Bitcoin Price Prediction: Historical Data Hints End of Downtrend</h2>
The historical price data of <a href="https://coingape.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin price</a> reveals a recurring pattern of significant downturns, each followed by a strong rally surpassing previous highs. Since 2013, Bitcoin has experienced three to four major corrections, each erasing about 80% of its market value before igniting a substantial price surge.
<img decoding="async" src="https://s3.tradingview.com/snapshots/j/JDSHnfZi.png" alt="TradingView Chart">
<ul>
 <li style="font-weight: 400;" aria-level="1">November 2013 Peak to Trough: The Bitcoin price soared to a high of $1,163, only to plummet by 87%, hitting a low of $152.</li>
 <li style="font-weight: 400;" aria-level="1">December 2017 High to Low: The coin reached a peak of $19,666 and then underwent an 84% correction, falling to $3,090.</li>
 <li style="font-weight: 400;" aria-level="1">June 2019 Decline: From a high of $19,652, the price was corrected by 84%, reaching $3,122.</li>
 <li style="font-weight: 400;" aria-level="1">November 2021 to November 2022: The most recent cycle saw Bitcoin reach an all-time high of $69,000 before dropping to a November 2022 low of $15,494, marking a 77% decline.</li>
</ul>
If history is anything to go by, the prior correction trend has already projected the repetitive pattern of a 70-80% fall, indicating a strong potential for a new uptrend underway, especially with Bitcoin halving expected in a few months.
The post <a rel="noopener noreferrer nofollow" href="https://coingape.com/blog/bitcoin-price-going-to-50k-if-sec-greenlights-multiple-btc-spot-etfs/">Bitcoin Price Going To $50k If SEC Greenlights Multiple BTC Spot ETFs</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coingape.com">CoinGape</a>.

Bitcoin Price Going To $50k If SEC Greenlights Multiple BTC Spot ETFs

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