Everyone wants to know that bitcoin will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved? We talk about the Bitcoin ETF, an important part in the cryptocurrency space. According to analysts, in order to meet institutional demand, approval will force ETF issuers to buy tens of billions of dollars’ worth of bitcoin, which will cause a significant change in the dynamics of supply and demand. People tend to “overestimate the initial impact of U.S. Bitcoin ETFs,” and initial flows will amount to “a few hundred million of (mostly recycled) money,” despite the fact that a spot ETF will generate “trillions in value” over time.
What is Bitcoin ETF?
There are currently many ways to get bitcoin, including buying it on an exchange, investing in exchange-traded funds (ETFs) that track the price of bitcoin futures, and acquiring other cryptocurrencies. These futures funds are not the same as the spot ETFs that corporations are presently fighting to get into the market; authorised in 2021, the futures ETFs are made up of contracts between two parties to exchange bitcoin at a predetermined price. Because bitcoin futures ETFs can generate price gains without requiring investors to possess the volatile asset itself, many buy shares of these products.
Exchange-traded funds (ETFs) for bitcoin are collections of assets linked to bitcoin that brokerages provide for trading as ETFs on conventional exchanges. Giving retail and other investors exposure to cryptocurrencies without requiring them to be owned is the goal of these exchange-traded funds (ETFs). An exchange-traded fund made up of assets correlated with the price of bitcoin is known as a Bitcoin ETF. Rather than being exchanged on a cryptocurrency exchange, they are traded on a conventional exchange.
Even with today’s lower prices, retail investors might not have the funds to buy a single Bitcoin due to its exorbitant cost. You can buy Bitcoin with an ETF while staying within your spending limits, risk tolerance, and investment objectives.
How will the market react to the Bitcoin ETF approval?
Since the beginning of October, Bitcoin has increased 61%, mostly due to anticipation that the
SEC will accept one or more applications for spot ETFs. This has led a number of analysts to predict that once the ETFs go live, there would be a sell-the-news-driven drop. Once the news is confirmed, they warn, investors who had profited from the run-up will sell to lock in their gains, which will cause the price to fall.
Take into account the launch of other futures ETFs, such as BITO, and the launch of CME bitcoin futures in December 2017. Those were times when bitcoin was rising in the weeks following the incident. Three days before to the SEC approving the first futures ETFs, bitcoin saw a 15% increase. After a month, it reached a record-breaking $69,000. Bitcoin rallied 160% last year and has gained almost 4% this month.
The recent 150% increase in bitcoin prices may benefit from all of this additional investment. As of right now,
the price of one bitcoin is over $43,500, the highest since April 2022.
According to Brian Evans, the founder of venture capital firm BDE Ventures, “there might be an initial dip once an approval happens, given that the market has been somewhat front-running the approval of these ETFs,” but the money influx “will likely be a positive catalyst for bitcoin” subsequently.
There’s good reason to think that acceptance would significantly bolster bitcoin regulation. Investing in these funds might provide investors with more peace of mind than purchasing bitcoin straight from a cryptocurrency exchange and storing it in a digital wallet, as the SEC would oversee any ETFs it approves.
The Next Big Thing: The Bitcoin Halving
Approval of spot bitcoin ETFs, however, is not the only thing that will boost bitcoin in 2024. It’s anticipated that the next halving will occur in April. By reducing the quantity of cryptocurrency incentives given to miners in half, halving events aid in the management of the limited supply of 21 million bitcoin.
The most recent
bitcoin halving happened in May 2020, when mining rewards decreased from 12.5 bitcoins per block to 6.25 bitcoins. Some call the occurrences “halvenings,” a combination of the terms “happening” and “halving.”
Every 210,000 bitcoins are mined, which takes about four years, and halving events take place thereafter. When the production of new bitcoins slows down, the price of bitcoin has historically increased in the months that follow halving events.
Will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved?
Institutional investors would find it easier to speculate on the price of Bitcoin if the SEC approved a spot Bitcoin ETF. With the Bitcoin ETF traded through the same venues as Tesla stock, bonds, gold, oil, or any other conventional asset, it would essentially bring Bitcoin to Wall Street.
Investors do not have to worry about storage, security, or private keys when using a Bitcoin ETF. Like with their stock, they own shares in the ETF and can access the cryptocurrency market without having to go through the hassle of buying and storing bitcoin. Investors have been waiting impatiently for a bitcoin spot ETF, but it looks like the wait is almost over. The date by which the SEC must approve the current bitcoin ETFs.
It is expected that the launch of bitcoin ETFs would present institutions with more and more chances to invest in cryptocurrencies and other digital assets. A major factor driving the recent surge in bitcoin and other cryptocurrency investments has been the expectation of Bitcoin ETFs. And the much anticipated launch is getting closer.
In the
beginning of 2024, bitcoin reached 20-month highs above $45,000, and on Thursday, it traded above $44,000. Regarding how approvals of ETFs will affect the price of bitcoin, analysts cannot agree. Both in the short and long terms, the volume and pace of ETF inflows will probably have a significant impact on the price of bitcoin.
In 2023, the biggest cryptocurrency in the world saw a 158% increase. The launching of a Bitcoin ETF and the halving of Bitcoin will be helpful triggers in 2024, If Bitcoin continues to rise, Bitcoin will go over $60,000.
Conclusion
Buying Bitcoin from a cryptocurrency exchange is still seen by many crypto-curious people as a confusing affair. Some investors are turned off by the technical parts of owning Bitcoin, such as private keys, crypto wallets, and Bitcoin addresses, which can be bewildering to beginners.
All of this has increased interest in Bitcoin exchange-traded funds, or ETFs. To introduce exchange-traded funds (ETFs), prominent American financial firms such as BlackRock, Fidelity, and Invesco have submitted applications to the Securities and Exchange Commission (SEC). The Securities and Exchange Commission (SEC) has not yet approved a spot Bitcoin ETF as of January 2024.
