Why is Bitcoin Spot ETF Important

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There are two main reasons why the applications of Bitcoin Spot ETF have garnered attention:

  • The successful approval of Bitcoin Spot ETF could trigger another significant surge in Bitcoin prices, reaching a high of $35,000, with potential gains of 25%-30%.
  • The successful approval of Bitcoin Spot ETF represents the expansion of compliant investment channels for cryptocurrencies. Bitcoin Spot ETF could become one of investors' most favored cryptocurrency investment products in 2023.

Driving the Price Increase

If the Bitcoin Spot ETF is successfully approved and issued, it could trigger another substantial surge in Bitcoin prices, hitting a high of $35,000, potentially ranging from 25% to 30%.

The issuance of Bitcoin Spot ETFs could attract significant funds from traditional markets, directing them into the Bitcoin market and thereby increasing Bitcoin's liquidity. This can open up a significant gateway between these two markets, continuously channeling funds into the Bitcoin market. The most tangible outcome of this increased liquidity influx is an upward movement in Bitcoin prices.

So, what might be the range of Bitcoin price increases? According to estimates, if the applications of these 8 institutions are all approved, Bitcoin's market capitalization could potentially increase by around $0.145 trillion. This could lead to Bitcoin's price reaching a new all-time high (ATH), surpassing $35,000, with a gain of nearly 25%.

Explanation: For estimation, we used the total management assets under GBTC as a reference. Currently, GBTC's total management assets amount to approximately $18.3 billion. Based on this data, the liquidity brought by the issuance of 8 Bitcoin Spot ETFs could be around $0.145 trillion.

Additionally, the positive sentiment brought by the issuance of spot ETFs could potentially trigger scenarios where significant funds pump, causing a bullish run. The entrance of whales could further propel Bitcoin's price upwards.

Expanding Compliant Investment Channels

Another significant implication of the successful approval of Bitcoin Spot ETF is the expansion of compliant investment avenues for cryptocurrencies.

Currently, within the United States, compliant cryptocurrency investment products primarily revolve around derivatives, with only a few options available based on physical cryptocurrencies. If Bitcoin Spot ETFs are successfully issued, they would introduce a fresh regulatory-compliant investment channel for investors, while also accelerating the inflow of funds.

According to a survey conducted earlier this year by Bitwise and VettaFi among financial advisors regarding cryptocurrency investments, over 68% of advisors expressed a preference for using ETFs as a way to hold cryptocurrencies. Furthermore, Bitcoin emerged as the cryptocurrency asset that most intrigued financial advisors (41%).

Therefore, after launch, Bitcoin Spot ETFs are poised to become one of the most favored cryptocurrency investment products among investors, and being integrated into investors' asset portfolios.

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