October 31, 2023
The co-founders of crypto analytics firm Glassnode believe that the approval of a spot-based Bitcoin exchange-traded fund (ETF) by regulators will trigger a significant influx of capital into the cryptocurrency.
Jan Happel and Yann Allemann, the co-founders of Glassnode, anticipate that institutional investors, with trillions of dollars at their disposal, are eagerly awaiting the introduction of a spot market BTC ETF.
According to Happel and Allemann, the emergence of Bitcoin Spot ETFs is revolutionizing the financial landscape in unprecedented ways. They highlight the growing demand for such ETFs, with companies holding over $15 trillion in assets actively seeking approval for Bitcoin Spot ETFs.
The co-founders also suggest that once Bitcoin ETF Spots receive regulatory approval, the fear of missing out (FOMO) among institutional investors could trigger a bull run, propelling the crypto market to new heights.
Bloomberg analyst Eric Balchunas recently revealed that BlackRock, a financial giant, is already funding its BTC ETF, known as the iShares Bitcoin Trust.
In terms of Bitcoin's price action, Happel and Allemann note that the cryptocurrency is currently experiencing a cooling-off period after reaching a peak of around $35,000. They state that the bulls have had the upper hand this week, but BTC has stabilized and lost some momentum, with a price decrease to approximately $34,000.
While the approval of future ETFs could lead to further gains, the co-founders caution that these events may trigger short-term selling due to market dynamics.
As of now, Bitcoin is trading at $34,076.
In conclusion, the potential approval of a Bitcoin Spot ETF has the power to reshape the crypto market by attracting significant institutional capital. The co-founders of Glassnode believe that the demand for such ETFs is substantial, with trillions of dollars waiting on the sidelines. If regulatory approval is granted, the fear of missing out among institutional investors could ignite a bull run. However, the co-founders caution that short-term selling may occur following the approval of ETFs. Overall, the introduction of a Bitcoin Spot ETF has the potential to propel the crypto market to new heights.