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As Bitcoin (BTC) continues its progress towards $38,000, the long-awaited arrival of the US spot Bitcoin exchange-traded fund (ETF) could open the door to digital currency investing for institutional and retail investors.
Notably, Bloomberg Intelligence estimates that the potential spot Bitcoin ETF market could reach $100 billion, signaling a breakout for the cryptocurrency on Wall Street.
Inquiries surge due to threat of spot Bitcoin ETF
Expectations surrounding a Bitcoin ETF stem from the expected regulatory approval by the US Securities and Exchange Commission (SEC). After rejecting various applications for a decade, the SEC is on its way to giving the green light to an ETF that will enable buying and selling of Bitcoin within a tax-efficient and cost-effective framework.
This significant regulatory change has sparked optimism among digital asset proponents, who see it as a redemption opportunity after the industry’s recent challenges.
Respected giants like BlackRock, Fidelity, and Invesco are expected to participate in the spot Bitcoin ETF market. The collaboration between Galaxy Digital Holdings and Invesco emphasizes the growing interest of reputable financial institutions.
On this matter, Galaxy Digital recently hosted a conference call, attended by approximately 300 investment professionals, to discuss strategies for allocating investments in Bitcoin in anticipation of the launch of the ETF.
According to Bloomberg, wealth managers and financial advisors are increasingly interested in the potential of Bitcoin ETFs. Professionals like Jeff Johnson at Summit Wealth have received inquiries from investors of all ages, indicating a growing appetite for digital assets in portfolios.
Coinbase suggests that ETFs will attract immediate inflows and reshape the market through new debt and derivatives trades. However, it is important to note that this change will take time to fully unfold.
The impending launch of a Bitcoin ETF represents a significant milestone for the cryptocurrency industry, potentially catapulting it into the mainstream financial landscape.
The estimated $100 billion market for spot Bitcoin ETFs, according to Bloomberg Intelligence estimates, underscores growing confidence and widespread interest among investors.
BTC dominance continues
Bitcoin continues its dominance in the cryptocurrency market, experiencing notable inflows of $155 million, according to a recent report from CoinShares.
This surge in investments comes as investments alone accounted for about 3.4% of total assets under management in the last eight weeks.
Interestingly, while Bitcoin saw substantial inflows, there were approximately $8.5 million outflows from short-Bitcoin positions last week. This shows that investors are optimistic about the future of BTC and its further growth potential.
Consistent with the above, the report suggests that this positive BTC sentiment is closely linked to the expected approval of a spot Bitcoin ETF in the United States.
At the time of writing, BTC is trading at $37,100, up 1.7% in the last 24 hours, with hopes that the largest cryptocurrency in the market can once again break the $38,000 mark and target the $40,000 mark. Therefore, it can be consolidated on top of it.
However, it remains to be seen whether the SEC’s approval of a spot Bitcoin ETF will be the main catalyst for further gains in the coming months or whether the rejection could cause BTC to test investor confidence and fall below support levels. .
Featured image from Shutterstock, chart from tradingview.com
source: www.newsbtc.com
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