According to Bloomberg, the potential approval of a Spot Bitcoin ETF could lead to a market valuation of $100 billion, drawing significant interest from major financial players.
The most awaited event in the cryptocurrency industry is the approval of a Bitcoin ETF. Bloomberg Intelligence suggests that if the Spot Bitcoin ETF gets approval, it could have a market valuation of around $100 billion.
The entire market is closely watching this development, and the news has already affected Bitcoin prices, showing the anticipation among retail and institutional investors.
The decision is currently under the scrutiny of the US Securities and Exchange Commission (SEC), but experts predict that the first Bitcoin Spot ETF might go live in January, providing stability to the current scenario.
Financial Titans Await Approval of Bitcoin ETF
As the prospects of a Bitcoin Spot ETF approval loom, financial heavyweights such as BlackRock, Fidelity, and Invesco are poised to enter the market, signaling a potential market growth to $100 billion or more, according to experts.
Galaxy Digital Holdings Ltd., collaborating with Invesco on an ETF application, recently organized a call engaging around 300 investment professionals to discuss Bitcoin allocation strategies in anticipation of the ETF launch.
Notably, wealth adviser Jeff Janson of Summit Wealth, managing over $550 million, is gearing up for the ETF debut and foresees significant institutional interest once the SEC gives its approval.
Experts predict that these upcoming ETFs will offer a cost-effective and direct avenue for investors to access pure Bitcoin, avoiding additional expenses associated with futures-based options.
Bitcoin Fees Surge Amidst Anticipation of ETF Approval
With the anticipation of a Bitcoin ETF approval, transaction fees for Bitcoin have witnessed a significant surge for the second time this year. Ycharts data reveals that Bitcoin’s average transaction fees jumped from $7 to $18.67 on November 17, marking a 506.9% increase in a year.
This surge is the second-highest in a year and the third within the last six months. The previous peak in Bitcoin transaction fees occurred in May when they reached around $30. Currently, the fees have moderated to $10.
Analysts believe that the potential approval of a spot Bitcoin ETF could attract substantial funds from institutional investors, potentially driving Bitcoin’s price to new highs in the upcoming months. Bloomberg experts project a 90% likelihood of regulatory approval for all ETF bids in the same batch by January.
At the time of writing, Bitcoin’s price had risen by 1.90% in the past 24 hours to $37,168.96, accompanied by a 41.84% increase in trading volume to $15.99 billion.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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