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For better or for worse, the Bitcoin Spot ETF approval is upon us. It could have meant nothing or of less significance if it was coming from another clime, but when it's about the largest American asset management institution, the rest of the world needs to pay attention to what's coming. Now, it doesn't matter what analysts think, it doesn't matter what crypto enthusiasts think, positive or negative, the world needs to brace up for what's coming.
Gary's delay antics look to be nailed to the bud by the recent move of BlackRock to invest $10 million in Bitcoin for seeding in readiness for their ETF application approval. Gary Gensler's SEC still has about a fortnight before the final day to rule on the Bitcoin Spot ETF application. The awaiting marriage ceremony between the traditional finance institutions and the crypto industry is about to be sealed. The crypto world is ready to see if this is a match made in heaven or a recipe for disaster.
According to analysts, the chances of getting the Bitcoin Spot ETF approval is over 95%, and this may lead to a mass approval of other applications beside BlackRock's as the SEC will not want to be seen as being in favor of one entity over another. But the question remains; will the Bitcoin Spot ETF approval make our portfolios richer or bankrupt us? Only time will tell. But whether we like it or not, we are going to ride the wave. It's bloom or burst!
Since BlackRock entered the stage with their ETF application fillings, the crypto market has been intense with speculations and news coming from this sector. The speculations got the hold on the crypto community with a Cointelegraph fake news of a BlackRock's Bitcoin ETF approval causing funds of over $21 million in assets whipped out in a few minutes. Will we not see a repeat of the same scenario or a worse case?
Analysts have told us that the approval of a Bitcoin spot ETF could potentially take Bitcoin price to $100k and above. The claim is on the ground that big financial advisors who manage clients' investments and funds could be able to add Bitcoin in clients' portfolios, bringing in up to $30 trillion of advised wealth into Bitcoin.
Other possible positive effects of the Bitcoin Spot ETF approval are proliferated on the crypto space. Top of it is that it would lead to an improved romance between the crypto industry and the traditional financial institutions.
A Bitcoin Spot ETF approval will see an improved security to investing in the digital asset. A Bitcoin Spot ETF is seen as a SEC-approved vehicle for Investors who's exposure to Bitcoin BTC has been limited due to the inherent risks in crypto Investing. Moreover, the approval of Bitcoin Spot ETF could lead to mainstream acceptance of the digital asset and establish its legitimacy, thus, bringing in significant cash flow from more serious Investors.
Additionally, the approval of a Bitcoin Spot ETF could lead to increased liquidity for the crypto market as institutional money begins to enter into the market. Furthermore, it will lead to a competition for crypto exchanges. Most people who have been trading BTC on exchanges might turn to an ETF for security purposes.
Nonetheless, the approval of a Bitcoin Spot ETF could lead to a bloodbath scenario. It's expected that institutional investors in Bitcoin that have been doubling down and riding the Bear waves could capitalize on the opportunity to take profits from their long time investment. The probability of this happening is very high. These institutions didn't buy BTC for no other reason than for profit making, and the Bitcoin ETF approval rush looks like a better opportunity to take profits as more liquidity will be coming into the market.
This scenario was tested as mentioned above, and we can expect a worse situation this time should the BlackRock's Bitcoin ETF approval goes live.
Hate it or not, Gary Gensler's SEC has no more antics under their sleeves to delay the approval of the BlackRock's Bitcoin ETF application and the others. Expectedly, as being circulated in the media, January 10, 2024 could be the historic day for the approval to be sealed. It's now for better or for worse. Will the Bitcoin Spot ETF approval make the bank for us, or will it send us back to the farm? Only time will tell. For now, brace yourself for the waves that are coming into the crypto market.