Bitcoin Spot ETF: A New Breakthrough in the Crypto Market

After a long bear market, the market is eager for a new breakthrough to boost sentiment. Relying solely on innovative projects has become difficult to stimulate market enthusiasm, and Bitcoin Spot ETF is expected to become the catalyst for the next bull market.

Despite the cautious attitude of regulators towards Bitcoin Spot ETF and the repeated delays in approval, the market remains optimistic about its eventual approval. Current predictions show that the probability of Bitcoin Spot ETF being approved within this year is 75%, and the probability of approval by the end of 2024 could reach 95%. As a potential major positive, the approval of Bitcoin Spot ETF is expected to become the engine for a new round of crypto bull market.

Overview of Bitcoin Spot ETF and Its Appeal

A Bitcoin Spot ETF is a fund that directly buys, sells, and holds real Bitcoin. It allows investors to participate in Bitcoin trading at current market prices without having to manage a Bitcoin wallet themselves. Compared to Bitcoin futures ETFs, Spot ETFs carry lower risks and are considered a more legitimate form of investment.

The advantages of Bitcoin Spot ETF include:

1. Can be traded on stock exchanges, providing flexible investment strategies.
2. Provide compliant Bitcoin investment channels for traditional financial institutions
3. Expand the scale and participation of the crypto market
4. Provide direct opportunities to participate in the Bitcoin market
5. Meet market demand and expand investment channels.
6. Enhance transparency and regulatory compliance

Breakthrough of Bitcoin Spot ETF

Although the United States has not yet approved a Bitcoin Spot ETF, countries like Canada have successfully launched one. In February 2021, the world's first Bitcoin Spot ETF was listed on the Toronto Stock Exchange, with a trading volume of nearly $400 million on its first day.

As the global center of the crypto market, the United States has seen investment institutions continuously attempt to apply for Bitcoin Spot ETFs. In June of this year, the world's largest asset management company, BlackRock, submitted an application, reigniting market expectations. BlackRock manages assets exceeding $9 trillion, and of the past 576 ETF applications, only 1 has been rejected.

Due to the influence of BlackRock's application, other institutions have also joined the application ranks. As of August, 8 well-known institutions have applied for a Bitcoin Spot ETF. After 10 years of effort, the "curse" of the approval of the American Bitcoin Spot ETF may be broken.

The Potential Impact of Bitcoin Spot ETF on the Crypto Industry

1. A certain trading platform may become the biggest beneficiary

After the ETF application is approved, a certain trading platform may become the biggest winner. As the largest and compliant encryption exchange in the United States, this platform has been designated as a partner by multiple application institutions, responsible for providing regulatory sharing services. In the future, after the ETF is approved, a large amount of assets will be custodied on this platform, bringing significant benefits to it.

2. Could become a catalyst for a crypto market bull market

The approval of the Bitcoin Spot ETF will provide a safe and effective channel for traditional financial funds to enter the crypto market. Given the massive asset scale behind the applying institutions, this will inject a large amount of capital into the market and is expected to become the engine for the crypto market's transition from bear to bull.

3. Accelerate the mainstreaming process of encryption assets

Bitcoin Spot ETF provides institutional investors with a more convenient and standardized way to participate in the crypto market, helping to enhance the recognition and popularity of cryptocurrency. Meanwhile, the supervisory sharing agreement will increase market transparency, improve credibility and investor confidence, and promote the maturity and stability of the crypto market.

Conclusion

Although U.S. regulators have not made a final decision, the approval of the Bitcoin Spot ETF seems to be just a matter of time. The SEC has allowed the listing of higher-risk Bitcoin futures ETFs, making it logically difficult to continue rejecting the Spot ETF. New applications have joined the oversight sharing agreement, addressing the previous lack of regulatory transparency. The market generally expects that the Bitcoin Spot ETF will eventually be approved in the U.S., bringing new opportunities and challenges to the crypto market.