Brace for Impact as U.S. Nears First Bitcoin Spot ETF

In the ever-evolving landscape of cryptocurrency, all eyes are on the awaited approval of the first U.S. spot bitcoin exchange-traded fund (ETF). The recent surge in bitcoin prices, reaching an 18-month high at $37,970, was spurred by BlackRock’s groundbreaking steps toward an ether ETF. While bitcoin’s value has more than doubled since the beginning of 2023, it still lingers below its peak in November 2021.

Numerous asset management firms, including heavyweights like BlackRock, WisdomTree, and Valkyrie, are patiently awaiting approval from the Securities and Exchange Commission (SEC) to launch a spot bitcoin ETF. Experts suggest that the green light may illuminate the crypto market as early as 2024.

Bryan Armour, Director of Passive Strategies Research for North America at Morningstar, asserts that a spot bitcoin ETF would be the holy grail for ETF investors, providing a direct investment avenue into the digital asset. Currently, U.S. investors can access bitcoin through futures ETFs, but these come with their own set of challenges. A spot bitcoin ETF would represent a significant leap forward, allowing investors direct exposure to the cryptocurrency.

Armour anticipates a potential “batch approval” by the SEC, where multiple spot ETFs could receive the green light on the same day. He notes an optimistic shift in the SEC’s approach, signaling a more serious consideration of recent filings. While expectations of a bitcoin rally upon approval are high, Armour advises caution, acknowledging the possibility of a short-term dip as some investors may seize the opportunity to collect profits. The anticipation continues, and the crypto community watches with bated breath for the SEC’s decision on the future of spot bitcoin ETFs

What do you think? Will the rally continue or are we not out of the woods of this bear market yet?