Crypto Rover recently shared his perspective on Twitter regarding the potential approval of a Bitcoin Spot ETF. Despite growing expectations that the odds of approval are around 75% in 2023, climbing to 95% by 2024, Rover pointed out that the cryptocurrency market has not reacted with as much enthusiasm as one might anticipate. He pondered why the markets seem relatively unfazed despite the potentially significant implications of getting a direct Bitcoin ETF approved.
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The Market’s Reaction to a Bitcoin Spot ETF
The general consensus among experts and analysts is that a Bitcoin Spot ETF is on the horizon. However, Crypto Rover points out that the market isn’t showing the expected bullish behavior in anticipation of this event. Traditionally, markets tend to price in significant events before they occur. So, why isn’t Bitcoin pumping?
According to current projections, the approval rate for a Bitcoin spot ETF is 75% for the year 2023 and rises to 95% for 2024. Despite these high probabilities, the market seems to be in a state of equilibrium, leading Crypto Rover to speculate that perhaps the Spot ETF is already priced in.
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Show more +Long-term Impact Over Short-term Gains
Crypto Rover believes that the impact of a Bitcoin Spot ETF won’t be immediate. Instead, he suggests that its real influence will be felt in the long term, particularly as institutions become more involved in the market. The Spot ETF will serve as a gateway for institutional investors, especially when market hype is at its peak. This, in turn, will drive Bitcoin prices higher over an extended period.
Summary
In summary, Crypto Rover argues that while a Bitcoin Spot ETF may not trigger a massive short-term rally, its long-term influence on the market will be substantial. It will pave the way for institutional involvement, which is likely to drive prices higher in the long run.
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