George23 on Nostr: Gold rose 350% after the first ETF. Is the same waiting for Bitcoin? Cryptocurrency ...
Gold rose 350% after the first ETF. Is the same waiting for Bitcoin?
Cryptocurrency fans are once again waiting to see if the Securities and Exchange Commission (SEC) will finally approve a Bitcoin spot ETF. Market participants believe that this will promote the adoption of cryptocurrencies for the general public, leading to increased liquidity. According to the Finbold report, the approval of the ETF will also cause a price increase in the price of Bitcoin.
Will the Bitcoin spot ETF drive the same growth as gold?
Trader Ash Crypto compared the price performance of gold, shortly after the adoption of the first ETF for the precious metal back in 2004. In his post on Twitter, he posted a chart showing gold's growth of around 350% between 2004 and 2011, the price rose from the $450 level to over $1,820.
If bitcoin also increased by 350% after the approval of the ETF, it would reach a price of approximately $138,000. This price is not unrealistic for bitcoin and certainly not in a time frame of 7 years. Therefore, everyone is waiting to see if the largest digital asset in the world will achieve a similar price growth as gold.
Applications and Bitcoin spot ETFs are increasing
Bitcoin responded with a price rally immediately after the world's largest asset manager BlackRock filed for a spot bitcoin ETF. The company was followed by other companies, while the giant Fidelity also renewed its request. Interestingly, BlackRock has already applied for 575 ETFs and all of them have been approved by the SEC. But the Bitcoin spot ETF is the first of its kind because the SEC has yet to approve one.
Many believe it's only a matter of time, but the SEC has strong arguments. Direct exposure to Bitcoin puts traders at risk because the cryptocurrency market is not well regulated and there is a high risk of manipulation. On the other hand, bitcoin futures ETFs, which have already been approved by the SEC, represent exposure to bitcoin contracts rather than the asset itself.
The long-term impact is impossible to determine
A regulatory framework and strict oversight of the cryptocurrency market and centralized exchanges can help with the approval of the Bitcoin Spot ETF. Until then, it is questionable whether the SEC will even approve this product. In the short-term, it is certain that the market price of Bitcoin will probably increase due to the approval, but in the long-term, it is unrealistic to determine the development of the price, since the market can change any factor that affects the demand.
Cryptocurrency fans are once again waiting to see if the Securities and Exchange Commission (SEC) will finally approve a Bitcoin spot ETF. Market participants believe that this will promote the adoption of cryptocurrencies for the general public, leading to increased liquidity. According to the Finbold report, the approval of the ETF will also cause a price increase in the price of Bitcoin.
Will the Bitcoin spot ETF drive the same growth as gold?
Trader Ash Crypto compared the price performance of gold, shortly after the adoption of the first ETF for the precious metal back in 2004. In his post on Twitter, he posted a chart showing gold's growth of around 350% between 2004 and 2011, the price rose from the $450 level to over $1,820.
If bitcoin also increased by 350% after the approval of the ETF, it would reach a price of approximately $138,000. This price is not unrealistic for bitcoin and certainly not in a time frame of 7 years. Therefore, everyone is waiting to see if the largest digital asset in the world will achieve a similar price growth as gold.
Applications and Bitcoin spot ETFs are increasing
Bitcoin responded with a price rally immediately after the world's largest asset manager BlackRock filed for a spot bitcoin ETF. The company was followed by other companies, while the giant Fidelity also renewed its request. Interestingly, BlackRock has already applied for 575 ETFs and all of them have been approved by the SEC. But the Bitcoin spot ETF is the first of its kind because the SEC has yet to approve one.
Many believe it's only a matter of time, but the SEC has strong arguments. Direct exposure to Bitcoin puts traders at risk because the cryptocurrency market is not well regulated and there is a high risk of manipulation. On the other hand, bitcoin futures ETFs, which have already been approved by the SEC, represent exposure to bitcoin contracts rather than the asset itself.
The long-term impact is impossible to determine
A regulatory framework and strict oversight of the cryptocurrency market and centralized exchanges can help with the approval of the Bitcoin Spot ETF. Until then, it is questionable whether the SEC will even approve this product. In the short-term, it is certain that the market price of Bitcoin will probably increase due to the approval, but in the long-term, it is unrealistic to determine the development of the price, since the market can change any factor that affects the demand.