Spot Bitcoin ETF Inches Closer To SEC Approval: Experts Weigh In On Investor Implications

Bitcoin BTC/USD 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 ETH/USD 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.

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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.

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