With the decision on the Bitcoin spot ETF looming, investors are wondering whether the ETF’s approval is already priced in. This determination will influence expectations of a price rally, a drop, or a sideways movement upon the decision.
The recent gains of Bitcoin over the past few months seem to suggest a “Yes.” Bitcoin’s price has nearly doubled since October. However, the impact of an actual approval on Bitcoin prices remains unclear. Questions such as “How much money will actually flow into the market?”, “Will other institutions follow?”, and “Will this legitimize crypto?” are being vividly discussed on social media.
Also, it’s worth considering how much of this rally is attributable to the upcoming Bitcoin halving in April this year. An event that in previous years has always led to a strong increase in Bitcoin price.
Also read: Uh-Oh, SEC’s Spot Bitcoin ETF Approval Could Be Delayed To January 15th
Split Decision Among Blockzeit Community
In a poll we launched on Twitter, our community appeared split on whether the Bitcoin ETF is already priced into the current Bitcoin price. Approximately 46% of the Blockzeit Twitter followers believe it is, while 54% think it is not.
What do the experts say?
Experts and analysts appear to be equally torn. Many see the ETF as a game-changer that could change Bitcoin forever, making it mainstream and attracting a wave of new investors. The involvement of big players like BlackRock only adds to this anticipation, suggesting that the approval might be just around the corner.
However, some voices in the crypto and traditional finance community advise caution. They argue that the market may have already adjusted to the possibility of an ETF, and warn against expecting a big surge in price. Gabor Gurbacs, adviser at VanEck, for example believes that the initial impact of the Bitcoin ETF is being overrated by the market. However, Gurbacs also notes that the longterm effect of ETFs are usually underestimated.
Final Thoughts
In conclusion, as the decision on the Bitcoin spot ETF comes closer, the market remains in a state of suspense. Only time will tell whether this event will be a transformative moment for Bitcoin or a milestone already reflected in its price.
Also read: What Happens If Spot Bitcoin ETF Is Not Approved?