The long-awaited approval of a spot Bitcoin exchange-traded fund (ETF) in the US could arrive as early as this week, potentially ushering in a new era of crypto investing.
While the ETF would track only Bitcoin prices, the validation of digital assets implied by SEC approval could lift crypto values across the board.
With a dozen applications from major financial institutions like BlackRock now pending, there’s a growing belief that a spot BTC ETF in the US is a question of when, not if.
SEC Opens First Window to Approve All 12 Spot Bitcoin ETFs
The SEC now has an eight-day window between November 9 and November 17 to potentially approve all 12 pending spot BTC ETF applications, as reported by Cointelegraph.
This window opened after the SEC extended the deadline for several filings to November 8, making it the first opportunity to approve all applications since Grayscale won its court battle with the regulator in August.
Approving all 12 applications at the same time would signal a major shift in the SEC’s stance on Bitcoin ETFs.
While not guaranteed, analysts like James Seyffart predict a “90% chance” of at least one spot BTC ETF being approved by January 20, 2024.
The likelihood of an approval has boosted market sentiment, with Bitcoin’s price rallying over 47% from September’s low.
However, some investors are worried that a spot BTC ETF approval is now priced in and that the official launch won’t affect prices much.
Regardless, opening this approval window looks to be a pivotal moment for crypto adoption, as all eyes remain fixed on the SEC’s communication channels in the coming days.
Spot BTC ETF Approval Could Spark Fresh Crypto Bull Run & Expanded Market
With a spot Bitcoin ETF looking likelier than ever, some investors believe now is an opportune time to gain exposure to the crypto market.
A spot Bitcoin ETF would provide a regulated, mainstream way for retail and institutional investors to gain direct exposure to the BTC price.
This increased accessibility and legitimacy could expand Bitcoin’s investor base and funnel billions (if not trillions) of capital into the market.
Some analysts predict that a spot BTC ETF approval could catalyze a new bull run – with price targets as high as $150,000 per Bitcoin being mooted.
Other factors boosting enthusiasm include Bitcoin’s limited supply, growing real-world adoption, and the upcoming halving event, scheduled to occur in April 2024.
An approved spot BTC ETF would also remove barriers to crypto investment, benefiting a range of altcoins like Ethereum, Solana, and Cardano.
With the crypto market still down significantly from 2021’s all-time high, many see now as an ideal entry point before prices surge higher.
Could New Altcoins Also Benefit from the Spot BTC ETF Narrative?
While the focus is clearly on Bitcoin at the moment, some believe the increase in mainstream crypto adoption could also boost new projects.
Altcoin projects launching innovative platforms timed to leverage the hype around SEC approval may be the first to attract investor interest.
Meme-themed projects like Meme Kombat (MK) combine hot crypto trends like gaming and staking into one and could also benefit from an uptick in investor sentiment towards low-cap cryptos.
Even crypto casino projects, like TG.Casino (TGC), could see increased interest as investors become more enthusiastic about purchasing high-risk, high-reward tokens.
As the crypto market gears up for a potential ETF-fueled bull run, new projects like these offer creative twists on what is already available in the market.
While risks exist, especially with presale cryptos, those seeking higher returns potential than Bitcoin may wish to add these innovative tokens to their watchlists.