- Bitcoin’s price has surged past $47,000 as investors anticipate potential SEC approval of spot bitcoin ETFs, which could boost price 10-15% according to a strategist
- Spot bitcoin ETFs would allow direct investment in bitcoin, attracting fresh institutional money and increasing new product demand
- Bitcoin fundamentals like illiquid supply and whale holdings continue strengthening, adding to bullish sentiment around spot ETF prospects
Bitcoin‘s price has surged past $47,000 as excitement builds around the possibility that the SEC could soon approve spot bitcoin exchange-traded funds (ETFs). This potential development has the crypto market feeling optimistic.
BTC Price Action
The price of bitcoin climbed as much as 5.4% to hit $47,766, its highest level in nearly a month. The cryptocurrency has gained over 11% in the past week. Other major cryptocurrencies like ether and XRP also rallied.
Impact of Potential Spot Bitcoin ETF Approval
According to Joel Kruger, a strategist at LMAX Digital, bitcoin could rally another 10%-15% if the SEC greenlights spot bitcoin ETFs. Unlike bitcoin futures ETFs, a spot bitcoin ETF would deal directly with the cryptocurrency itself.
Expert Analysis
A spot bitcoin ETF in the U.S. would very likely see price appreciation as a result of new product demand increasing,” said Kruger. He believes a spot bitcoin ETF could attract fresh money from institutional investors who have been hesitant to invest directly in the crypto asset.
Bitcoin Fundamentals Remain Strong
The potential for a spot bitcoin ETF comes as on-chain data shows bitcoin fundamentals have continued strengthening. For instance, illiquid supply and whale holdings have been rising.
Conclusion
While nothing is guaranteed, the prospect of the SEC approving spot bitcoin ETFs in the near future has many crypto investors feeling bullish. If spot bitcoin ETFs become a reality, it would likely provide a significant boost to bitcoin’s price and mainstream adoption. The coming days and weeks could prove pivotal for the cryptocurrency.
