The imminent possibility that the United States Securities and Exchange Commission (SEC) approves exchange-traded funds (ETFs) Bitcoin has unleashed a wave of expectations and anticipation in the financial market. Although the regulator’s favorable resolution is expected to arrive in January 2024 for the first ETF, current signals have kept investors on edgegenerating speculation about the potential impact of these assets.
Currently, the SEC’s ruling on 12 Bitcoin ETFs is awaited. Ark Invest’s tops the list, with an evaluation deadline of January 10, 2024, followed by BlackRock with a deadline until March 15, along with six others during that month. These dates have taken a crucial role in analysts’ forecasts, setting the pace of the market.
Investors highlight that these investment products, between funds and shares, are linked to a stock index, making Bitcoin the underlying asset. This association will determine fund performancereflecting the fluctuations of Bitcoin.
Bitcoin ETF: what advantages it offers
One of the most notable advantages for investors is the possibility of participating in the cryptocurrency without the need to purchase it directly. However, the impact of the approval of these ETFs It will not be limited to just facilitated access to Bitcoin.
Analysts predict that the approval of an ETF will generate a “black swan effect” considerable in the market, likely driving volatility and price higher. The influx of additional liquidity and demand, along with the reduction in Bitcoin supply, could lead to significant movements in the following months.
Should the SEC deny the Ark Invest ETF in January and approve the rest in March, a situation is anticipated in which the market will have already priced in the approvals. This could result in a period of intense and unpredictable volatility, although without the surprise effect mentioned above.
To evaluate the full impact of this release, It is essential to consider the current supply of Bitcoins on the market. According to official data, a large part of the Bitcoin mined (80%) are in the hands of long-term investors, leaving only 20% available for transactions.
Experts emphasize that if demand remains stable around the daily issuance of new Bitcoins, the price could remain constant. However, as the price appreciates, the value of this daily issuance will also increase, supporting a bullish narrative for the coming years, with a projected maximum price around $280,000 before reconsidering market conditions.
The ETFs of Bitcoinif approved in the United States, will not only facilitate access to new categories of investors, such as registered investment advisors and retirement funds, but could also trigger a significant increase in capitalization total crypto market. Furthermore, it is expected that these vehicles Regulated investment platforms open the door to new products, thus expanding the adoption of cryptocurrencies and establishing a more regulated and inclusive environment in the long term.
Source: Ambito
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