Many analysts believe that Bitcoin ETFs are about to be approved by the US Securities and Exchange Commission (SEC). A decision could be made today or tomorrow. What will happen to Bitcoin if ETFs become a reality?
Bitcoin (BTC) traded around USD 47,000 on Tuesday night, a level last seen by investors in early 2022. The current momentum is due to the fact that experts and market participants expect Bitcoin ETFs to be approved in the US soon. The US Securities and Exchange Commission (SEC) is likely to vote on this today or tomorrow. With Bitcoin ETFs on regulated US exchanges, an influx of institutional capital and increased interest in the cryptocurrency is expected. Let’s take a look at four predictions:
– VanEck wants to issue a Bitcoin ETF in the US itself. In a market analysis, VanEck writes that the introduction of Bitcoin ETFs is expected to generate around USD 1 billion in investments in the first three months. Over the first two years, up to USD 40 billion could flow into Bitcoin ETFs. A new all-time high for Bitcoin is still possible by the end of 2024.
– Galaxy is also one of the applicants for a Bitcoin ETF. In October 2023, the experts presented a report on the impact of such a BTC financial instrument. Their forecast: in the first year, Bitcoin ETFs are likely to attract a good USD 14 billion in capital, and in the third year, almost USD 39 billion would be realistic.
– Bitwise also wants to place a Bitcoin ETF. Bitwise analyst Ryan Rasmussen predicts an inflow of USD 72 billion into Bitcoin ETFs in the first five years after their approval on X.
– The bank Standard Chartered is sticking to its forecast of a Bitcoin price at the magical USD 100,000 mark by the end of the year. It expects Bitcoin ETFs to generate between USD 50 and 100 billion in capital inflows to BTC by the end of 2024.
Conclusion: Bitcoin ETFs – the optimism for BTC is tangible
Nobody in the crypto scene is currently thinking about the option of the powerful SEC pulling the ripcord on Bitcoin ETFs after all. Instead, people are eagerly calculating how positive Bitcoin ETFs are likely to be for the price development of BTC. From an expert perspective, a negative impact of Bitcoin ETFs on “digital gold” seems to be ruled out, even if some effects have probably already been priced in.