Bitcoin ETF: A Game-Changer or a Pipe Dream?
Login

Bitcoin ETF: A Game-Changer or a Pipe Dream?

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


The crypto world waits with bated breath as the U.S. Securities and Exchange Commission (SEC) decides whether to approve the first Bitcoin exchange-traded fund (ETF) in the country.

A Bitcoin ETF would allow investors to buy and sell shares of a fund that tracks the price of the cryptocurrency without having to deal with the complexities and risks of owning and storing it directly.

By sidestepping the complexities and risks associated with direct ownership and storage, a potential ETF is anticipated to fuel the adoption and legitimacy of Bitcoin, attracting both institutional and retail money.

Despite the optimism surrounding the potential approval, the SEC has historically hesitated to greenlight such proposals, citing concerns over market manipulation, fraud, and regulatory oversight. Notable players in the latest wave of hopefuls, including Valkyrie, VanEck, and ProShares, are anxiously awaiting the SEC’s decision, with the deadline looming at the end of this week.

Bitcoin ETF Anticipation Triggers Surge Demand for Bitcoin Futures

Market indicators already reflect a sense of anticipation, with Coinglass data revealing a surge in demand for Bitcoin futures, reaching $19.2 billion in early December—the highest level in two years. Though the figure has slightly receded to $18.85 billion, it remains well above the 2023 average.

Bitcoin futures open interest chart
Image: Coinglass

Positive funding rates since October further underscore the growing confidence in Bitcoin’s upward trajectory. This sentiment is mirrored in Bitcoin’s spot price, which reached a local high of over $47,850 on Jan. 9, marking a remarkable 170% gain in 2023.

Bitcoin daily chart from TradingView
BTC/USD Daily Chart

However, not everyone is convinced of imminent or desirable ETF approval. Analysts caution that an SEC rejection could trigger a market sell-off, deflating expectations of a breakthrough. Some argue that an ETF may compromise Bitcoin’s original vision as a decentralized and censorship-resistant form of money, exposing it to heightened regulatory scrutiny and intervention.

As the SEC’s verdict hangs in the balance, the crypto community finds itself at a crossroads of hope and fear, excitement and anxiety.

The impending decision sparks questions: Will a Bitcoin ETF be a game-changer, or is it merely a tantalizing pipe dream? Only time will unravel the fate of this pivotal moment in the crypto world.

 

Interested In Getting The “Learn2Trade Experience?”Join Us Here

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News