- Bitcoin’s ability to hit $100k this year could be dependent on the approval of a Spot ETF
- Market players express serious concerns over Spot ETF delay.
Last year, the cryptocurrency market saw the United States welcome its first Bitcoin futures ETF. The approval was one of the biggest things to hit the Bitcoin ecosystem as industry players collectively agreed that the approval of a Bitcoin futures ETF was a significant step towards accepting Bitcoin’s position as a leading asset in the market. However, the arrival of a Bitcoin futures ETF did nothing to sway the minds of industry experts from maintaining that a Bitcoin Spot ETF was an even better option.
Why a bitcoin spot ETF could send bitcoin to new highs
The collective closing price prediction for the big bull last year was $100,000. Many analysts were confident that Bitcoin would for the first time since its inception hit $100,000 by the end of 2021. However, the price of the asset only continued to suffer multiple pushbacks as Bitcoin struggled to sustain gains above $50,000.
Looking forward, integrating a Bitcoin-spot ETF into the market could be a major game-changer as market players have asserted in the past. This is particularly because Bitcoin-spot-based ETF introduces investors directly to the bitcoin market.
When a Bitcoin futures contract is executed, changes in the price of the contract from the current market prices are extremely high because market players can very easily change their sentiments. With a Bitcoin Spot ETF, this peril can be totally avoided.
As a Grayscale report recently noted, the approval of a Bitcoin Spot ETF could swoop in more investors to the crypto market. The influx of new investors is one that could easily catapult Bitcoin’s price to $100,000 or even higher.
As Crypto Investor Lark Davis noted in a tweet;
“Grayscale report shows that 77% of US investors would be more likely to invest in #bitcoin if they could buy it via a spot ETF. Investors want the BTC ETF, and it will be a big price catalyst. Now if only Gary from Goldman would allow the SEC to approve it.”
Will a Bitcoin-Spot-based ETF be approved in the United States this year?
On the 23rd of December, news broke that the U.S Securities and Exchange Commission (SEC) rejected Kryptoin’s proposal for a spot Bitcoin ETF. Market players have all responded similarly to the SEC’s decision, with the SEC Commissioner Hester Peirce saying “I can’t believe we’re still waiting for a Bitcoin Spot ETF to be approved.”
However, investors like Lark Davis are optimistic that the market will welcome a Bitcoin spot-based ETF this year.
