Industry experts in the crypto market ecosystem are continuing to voice out optimism on the approval of a spot Bitcoin ETF. Adding to this, the landmark ruling in the Grayscale lawsuit could act as a legal and regulatory precedent for the spot ETF approval in the United States.
Earlier, CoinGape reported that JP Morgan analysts believe the U.S. Securities and Exchange Commission (SEC) will be compelled to approve the motion for approving the Grayscale Bitcoin ETF into a spot ETF. However, it remains to be seen which company among the likes of Blackrock, Ark Invest, Fidelity Bitwise will grab the filing for the ETF.
Fresh Wave Of Bitcoin Investment
Crypto community insiders believe that an ETF approval could bring in a fresh wave of funds into the digital assets market. Lark Davis, a Bitcoin investor, said it is estimated that anywhere between $20 to $30 billion in cash could be invested in Bitcoin, as and when the ETF is approved. For a perspective, this amount could be worth about 50% of all the BTC existing in the crypto exchanges currently.
“Estimates are that a spot Bitcoin ETF would bring 20-30 billion of fresh cash into Bitcoin. That would buy about half of all coins on exchanges at current prices.”
The concept of ETFs backed by non-government assets had historically done well in the United States. For example, the launch of SPDR Gold Trust ETF (GLD), a gold backed exchange traded fund in November 2004 turned out to be a success. After the launch of the first gold backed ETF, the value of gold had took off steadily over the years. Will the BTC price repeat a similar trend after the Bitcoin ETF is approved?
BTC Price Prediction
Going by the estimated figures, the infusion of fresh could at least trigger a Bitcoin rally by 50% from the current range. Michael Saylor, the MicroStrategy cofounder and a Bitcoin supporter, continues to have faith in the asset as the company projected further buying of BTC, bolstering its position as the largest instituational Bitcoin holder.
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