Everyone wants to know that the price of Bitcoin will increase by 200% when the Bitcoin ETF is approved? We’re talking about the Bitcoin ETF, a big thing in the cryptocurrency space. According to analysts, in order to meet institutional demand, the approval will require ETF issuers to purchase tens of billions of dollars worth of bitcoin, leading to a significant change in supply and demand dynamics . People tend to “overestimate the initial impact of US Bitcoin ETFs” and initial flows will amount to “a few hundred million in (mostly recycled) money”, despite the fact that a spot ETF will generate ” billions of value” over time.
What is Bitcoin ETF?
There are currently many ways to obtain bitcoin, including purchasing it on an exchange, investing in exchange-traded funds (ETFs) that track the price of bitcoin futures, and acquiring other cryptocurrencies. currencies. These futures funds are not the same as the spot ETFs that companies are currently fighting to enter the market for; permitted in 2021, futures ETFs consist of contracts between two parties to exchange bitcoin at a predetermined price. Since Bitcoin futures ETFs can generate price gains without requiring investors to own the volatile asset itself, many buy shares of these products.
Bitcoin exchange-traded funds (ETFs) are collections of Bitcoin-related assets that brokerages offer to trade as ETFs on conventional exchanges. Giving retail investors and others exposure to cryptocurrencies without requiring them to be held is the goal of these exchange-traded funds (ETFs). An exchange-traded fund composed of assets correlated to the price of Bitcoin is known as a Bitcoin ETF. Rather than being traded on a cryptocurrency exchange, they are traded on a conventional exchange.
Even with today’s lower prices, retail investors might not have the funds to purchase a single Bitcoin due to its exorbitant cost. You can buy Bitcoin with an ETF while staying within your spending limits, risk tolerance, and investment goals.
How will the market react to the approval of the Bitcoin ETF?
Consider the launch of other futures ETFs, such as BITO, and the launch of CME bitcoin futures in December 2017. This was a time when bitcoin was surging in the weeks following the incident. Three days before the SEC approved the first futures ETFs, bitcoin saw a 15% surge. After a month, it reached a record amount of $69,000. Bitcoin rose 160% last year and has gained almost 4% this month.
According to Brian Evans, founder of venture capital firm BDE Ventures, “there may be an initial decline once approval is obtained, given that the market has been somewhat ahead of the approval of these ETFs,” but the influx of money “will likely be a positive catalyst for bitcoin” thereafter.
There is good reason to believe that acceptance would significantly strengthen the regulation of Bitcoin. Investing in these funds could offer investors greater peace of mind than buying bitcoin directly on a cryptocurrency exchange and storing it in a digital wallet, because the SEC would oversee any ETFs it approves.
The next big thing: the Bitcoin halving
However, the approval of spot bitcoin ETFs is not the only thing that will boost bitcoin in 2024. The next halving is expected to take place in April. By halving the amount of cryptocurrency incentives given to miners, the halving event helps manage the limited supply of 21 million bitcoins.
All 210,000 bitcoins are mined, which takes about four years, and halving events then take place. When the production of new bitcoins slows, the price of bitcoin has historically increased in the months following halving events.
Will Bitcoin price increase by 200% when Bitcoin ETF is approved?
Institutional investors would have an easier time speculating on the price of Bitcoin if the SEC approves a spot Bitcoin ETF. With the Bitcoin ETF trading on the same platforms as Tesla stocks, bonds, gold, oil, or any other conventional asset, this would essentially bring Bitcoin to Wall Street.
Investors do not have to worry about storage, security, or private keys when using a Bitcoin ETF. As with their stocks, they own shares of the ETF and can access the cryptocurrency market without having to worry about purchasing and storing bitcoins. Investors have been eagerly awaiting a Bitcoin spot ETF, but it appears the wait is almost over. The date the SEC must approve current Bitcoin ETFs.
The launch of Bitcoin ETFs is expected to provide institutions with more and more opportunities to invest in cryptocurrencies and other digital assets. The wait for Bitcoin ETFs has been a major factor behind the recent surge in investment in Bitcoin and other cryptocurrencies. And the long-awaited launch is getting closer.
In 2023, the world’s largest cryptocurrency saw an increase of 158%. The launch of a Bitcoin ETF and the Bitcoin halving will be useful triggers in 2024, If Bitcoin continues to grow, Bitcoin will exceed $60,000.
All of this has increased interest in Bitcoin exchange-traded funds, or ETFs. To introduce exchange-traded funds (ETFs), prominent US financial companies such as BlackRock, Fidelity and Invesco have submitted applications to the Securities and Exchange Commission (SEC). The Securities and Exchange Commission (SEC) has yet to approve a spot Bitcoin ETF in January 2024.