Sources informed Axios that the U.S. Securities and Exchange Commission (SEC) is expected to approve at least one of the 13 spot Bitcoin ETFs on January 10, with the approved ETFs likely to be listed for trading the following day. This long-awaited move will end a decade of anticipation, allowing investors to directly invest in the largest cryptocurrency through ETFs that hold Bitcoin (BTC) rather than just tracking its price through futures.
Despite the general sentiment in the crypto community suggesting that the approval might initially lead to a ‘buy the rumor, sell the news’ scenario, potentially driving down Bitcoin’s price, experts predict a long-term bullish impact. They anticipate increased individual and institutional demand for Bitcoin through regulated spot ETFs, coupled with the expected decrease in Bitcoin supply following the upcoming block reward halving in April.
Owen Lau from Oppenheimer warns that initial weak fund flows could create selling pressure on Bitcoin’s price. Meanwhile, a Bitwise survey highlights that while only 39% of financial advisors expect a spot ETF launch this year, 88% believe its approval would be a significant bullish catalyst.
Acheson and Tyrone Ross, CEO of Onramp Invest, expect the market’s initial reaction to be disappointing, but predict a more interesting turn as financial advisors become better informed about the crypto asset class. JPMorgan’s Worthington notes that the rally began with expectations of spot crypto ETFs, particularly Bitcoin ETFs, and that continued high activity, volume, and rising prices could support the rally.
The approval of spot Bitcoin ETFs is seen as a milestone for the cryptocurrency industry, potentially ushering in a new era of regulated investment products that could attract a broader range of investors and bolster the legitimacy of digital assets.