The crypto world is waiting for the highly anticipated decision on the Bitcoin spot ETF approval by the SEC. Whether you’re a dedicated crypto enthusiast or a beginner in this industry, you might have heard of various news highlighting the anticipation for approval of the Bitcoin spot ETF.
But have you thought about why this news is getting the limelight?
What’s all the fuss about?
And why approval of Bitcoin spot ETF matters so much to the crypto industry & investors.
Get answers to all these questions in our detailed blog post. The Coin Informer team made an effort to make our beloved readers aware of the importance of this historic decision, which is rumored to be taken by the SEC later this week.
Before discussing the importance & implications, let’s discuss what, exactly, is Bitcoin spot ETF.
Understanding Bitcoin Spot ETF:
Let’s take a look at the meaning of ETFs to understand better.
ETFs: These are a basket of securities or investment funds that can be traded on any exchange to track the performance of specific assets. ETFs are similar to individual stocks since they can be bought & sold by individuals via traditional brokerage accounts (such as NYSE). Besides this, nothing is similar between ETFs & individual stocks.
If you understand the meaning of ETFs, grabbing the concept of Bitcoin Spot ETF will not be difficult.
Putting all this together, it can be said,
“A Bitcoin spot ETF is a basket of investments that tracks the performance of the Bitcoin price in the spot market, where it is sold & bought by individuals through Traditional stock exchange.”
Current Status on the Bitcoin Spot ETF Approval: History in Making?
The excitement among the crypto industry and even the whole financing & business sectors towards the Bitcoin Spot ETF approval has led to Bitcoin’s prices breaching $47,000. In the early days of this week, when the whole world was celebrating New Year, the crypto industry flourished to a new level as Bitcoin surpassed $45,000 for the first time since April 2022. As of now, the Bitcoin’s price stands at $46,520.07. Let’s come back to the topic: the current status of the Bitcoin Spot approval.
If we trust close sources & insider news, the decision on Bitcoin ETF approval by the SEC can be expected later this week. Well! No one knows what to expect from the SEC.
Observing the tumultuous relationship between the SEC and the crypto industry, some analysts express concerns about whether a Bitcoin spot ETF will be approved or not. Still! There is a 99% possibility that the SEC will approve Bitcoin spot ETF. But the real question is, if the SEC approves Bitcoin spot ETF, how will it impact the crypto landscape?
Impact of Bitcoin Spot ETF Approval on Crypto Landscape:
If the SEC favored Bitcoin Spot ETF approval, it would be a significant win for the crypto industry, especially for investors. Such a decision will insist US regulators consider Bitcoin a legitimate asset. Moreover, US crypto industry will witness significant shift by making an effort in the favor of investor protection. This can open flood doors for investors to get involved with Bitcoin.
Sam Collahan’s Statement on Bitcoin Spot ETF Approval Impact:
In an interview with Yahoo Finance, Sam Callahan correctly highlights the impact of Bitcoin Spot approval on Crypto World. The Lead Crypto Analyst at Swan Bitcoin argues,
“It’s certainly an exciting time in Bitcoin, and the reason why the industry is so excited about a Bitcoin spot ETF approval decision as it’ll give access to millions of investors who are currently finding it a little bit harder to get exposure to Bitcoin. it’ll now be as easy as any other stock or bond to purchase Bitcoin in a traditional brokerage account. But specifically who this helps the most is large institutions that manage trillions of dollars of wealth such as financial advisors, broker-dealers. Right now, it’s not that they don’t want to get exposure to Bitcoin. They can’t because of regulatory requirements that restrict them from buying spot Bitcoin, but the approval of Bitcoin spot ETF will change that.”
Potential Positive Impacts that Need Your Attention:
I. Surge in Accessibility of Bitcoin:
After Bitcoin spot ETF approval, millions of US investors will get involved with Bitcoin directly. This will make Bitcoin the most accessible & convenient asset on the market.
II. Boost in the Bitcoin Prices:
As mentioned before, the anticipation of the decision of Spot Bitcoin approval has led to Bitcoin’s prices reaching new peaks by surpassing $47,000. Imagine the boost in Bitcoin price popularity when Bitcoin spot ETF gets approved.
Negative Effect of Bitcoin Spot ETF Approval:
If the SEC approves the functioning of Spot Bitcoin ETF, the whole attention will shift towards Bitcoin, reducing demand for other cryptocurrencies such as Ethereum, Litecoin & Solana. Thus, Spot Bitcoin ETF’s approval can negatively impact cryptocurrencies other than Bitcoin.
The excitement among the crypto industry towards the approval of Bitcoin Spot ETF is anything we have ever seen. Let’s see how much time the SEC will take to make this historic decision. If such a decision arrives soon, the crypto industry will never be the same. Investors will finally be able to buy or sell Bitcoin tokens like mutual funds. With this, Coin Informer would like to wrap up this blog post. As a leading source of the latest crypto news & updates, Coin Informer is your trusted companion. Stay tuned for our next news article.