Bitcoin (CRYPTO: BTC) enthusiasts are buzzing with anticipation as the approval for the inaugural U.S. spot Bitcoin exchange-traded fund (ETF) inches closer, according to financial experts.
Nine asset management firms, including BlackRock, WisdomTree, and Valkyrie, are awaiting approval from the Securities and Exchange Commission (SEC) to issue a spot bitcoin ETF. Experts predict the first approval could materialize as early as 2024, reported CNBC.
Bitcoin’s price escalated to an 18-month high of $37,970 last week, following BlackRock’s initial steps towards an Ethereum (CRYPTO: ETH) ETF. The cryptocurrency’s value has more than doubled since the beginning of 2023.
Bryan Armour, director of passive strategies research for North America at Morningstar, suggests that the approval of a spot bitcoin ETF would be the “best product on the market” for ETF investors, outclassing the currently available options that possess varying degrees of flaws.
Armour anticipates a “batch approval”, with several ETF listings happening simultaneously on the day the SEC gives the green light. He also predicts a possible bitcoin rally post-approval, although some investors might sell to reap profits, leading to a dip in price.
While the approval could make this asset class more accessible, experts advise investors to consider their risk tolerance and objectives before jumping in. A Nasdaq survey indicated that 72% of financial advisors would be more inclined to invest in crypto if spot ETFs were approved in the U.S.
Read Next: The biggest disruption to smartphones in 15 years is here. See how this company is Giving Users An Opportunity To Make Up To $1200 A Year
Photo by 24K-Production on Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!