- The cryptocurrency industry is abuzz with excitement for a potential Bitcoin ETF approval.
- Major financial institution titans are further driving excitement as the SEC deadline nears.
- Industry experts have predicted an approval to come in the coming year.
As the clock ticks towards the anticipated approval of Bitcoin ETFs, investors and issuers are on the edge of their seats, eagerly awaiting a verdict from the Securities and Exchange Commission (SEC). The approaching deadline has heightened expectations of a positive outcome, which could mark a major shift for Bitcoin and the overall cryptocurrency market.
As the industry watches on with bated breath, experts are weighing in, hoping to shed light on the potential benefits Bitcoin ETFs could usher into the cryptocurrency industry.
“Bitcoin ETF Approval Will Be a Major Catalyst”
During an appearance with BloombergTV on Tuesday, MicroStrategy co-founder and executive chair Michael Saylor delivered a bullish forecast for Bitcoin, predicting a major rally in 2024 upon a potential ETF approval in January.
Saylor asserted, “It's not unreasonable to suggest that this might be the biggest development on Wall Street in 30 years,” stating that it surpasses even the creation of the S&P index.
Highlighting that ETFs will provide institutional investors with a compliant channel to invest in the asset class, he stated that approval will result in a consequential “demand shock.” The demand is expected to coincide with a reduction in Bitcoin supply by the asset halving anticipated in the second quarter of 2024, catalyzing a significant market rally.
Adding to the optimism, Bitcoin ETF contender Grayscale CEO Michael Sonneshein has predicted trillions flooding into the market with the approval of Bitcoin ETFs. In a CNBC interview, Sonneshein emphasized a nod to Bitcoin ETFs will expose the asset class to traditional investors who have not had the chance to participate in the industry.
“We’re really talking about the advised market here in the US, which is today about $30 trillion worth of advice wealth that we hope the approval of Bitcoin ETFs, the uplisting of GBTC will allow for that opportunity for those investors to partake in it as well.”
Both Saylor and Sonneshein’s endorsements add to the buzz of optimism of Bitcoin ETFs, further fueling expectations of approval.
The ETF Approval Clock Ticks
The earliest deadline set by the SEC for a verdict on spot ETFs is January 10, 2024. Bloomberg analysts Eric Balchunas and James Seyffart have predicted a sequential rollout of all approvals by the commission.
While the SEC’s unpredictable nature makes it challenging to envision certain approval, industry experts have noted that the recent surge in the commission’s engagement with issuers strongly hints at a potential green light.
On the Flipside
- According to Microstrategy’s Quarter 2023 financial results, the firm holds 158,400 BTC in Total.
- The Bitcoin ETFs anticipation has fueled a market rally as Bitcoin and other crypto assets experienced significant price surges.
- The SEC received thirteen applications for spot ETFs this year.
Why This Matters
The potential approval of Bitcoin ETFs is poised to forge a synergy between traditional financial institutions and digital assets, catalyzing broader adoption of the asset class.
Read more on the SEC’s thought process as the deadline looms:
SEC Gensler Stirs ETF Approval Hopes with Dovish Remarks
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