Unveiling the Possible Effect of a Bitcoin ETF on the Market


With spot Bitcoin exchange-traded funds (ETFs) on the way into the cryptocurrency market, some people are beginning to discuss their potential impact upon financial markets. As for ETFs, the Securities and Exchange Commission (SEC) should be approving applications relatively soon; perhaps even as early as January.

Insights from Grayscale CEO

Grayscale chief executive Michael Sonnenshein recently provided some clues as to what is behind this trend, saying that he sees signs of more positive trends ahead for the market. More and more investors are including Bitcoin in their portfolios, he has observed. Further, Sonnenshein pointed to eagerness among many investors hoping for spot bitcoin ETFs who were trying to adjust their strategies. The significance of the market was emphasized by him. “ We ’ re talking recommend US $ 30 trillion worth of wealth there, ” he said.

One of the companies which is hoped to get approval for a spot Bitcoin ETF is Grayscale. On November 22, the company’s representatives met with officials in the SEC ‘ trading and markets division to work out details for changing their current product– GBTC –into the fund.

Predictions for The Rise of Bitcoin to US $ 1 Million

Jan3 owner Samson Mow foresees ETF products driving up the price of Bitcoin to US $ 1 million, and increasing branding and advertising. But he reckons competition among asset managers to amass more assets under management (AUM) will spark an advertising campaign driving interest in Bitcoin.

MicroStrategy co-founder Michael Saylor declared on December 19 that the addition of bitcoin ETF funds marked a major turning point for Wall Street in decades. Saylor feels that it will be products, such as ETFs, which attract the mainstream investor to Bitcoin.

Different Takes on the Impact of a Bitcoin ETF

But even with ETFs, many are not predicting an immediate doubling in bitcoins price. Anthony Pompliano, a cryptographer investor sees ETFs as bullish but not panacea.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.


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