Crypto experts react to SEC Bitcoin ETF approval

It finally happened. After months of waiting, the Securities and Exchange Commission (SEC) finally approved eleven spot Bitcoin ETFs from companies like Blackrock, Franklin Templeton, Invesco, and Fidelity. This is a major event in the evolution of Bitcoin, an asset that turned 15 years a few days ago. 

Crypto experts believe that the spot Bitcoin ETF approval will have an immediate snowball effect in the coming years. For one, they believe that institutional investors, who have largely remained in the sidelines, will start to allocate some cash to these funds. 

Besides, global asset managers have over $6 trillion in dry powder, or cash raised but not yet deployed. In a note Andy Baehr, the managing director at Coindesk Indices said:

“What does this mean for the price of bitcoin? ETF approval and launches were well predicted, so the only possible short-term upside surprise is better-than-expected inflows. Conversely, a lack of better-than-expected inflows may put pressure on bitcoin’s price, given its 50% rise since mid-October. Investors who are thinking about a strategic bitcoin allocation to their portfolio–2, 3, 4, 5%–will be much more focused on the longer-term “future of finance.”

In a separate emailed statement, Anthony Rousseau, the head of brokerage solutions at TradeStation, made a similar case. In the short term, he will be focusing in inflows to these Bitcoin ETFs, with some analysts expecting over $2.1 billion in assets. In the long term, however, he believes that some fund managers will start allocating some of their vast resources to Bitcoin. He said:

“This alignment of institutional inflows with the Bitcoin halving event in April positions the asset class for a promising year ahead. Many experts anticipate the possibility of a six-figure Bitcoin valuation soon. This ETF launch signifies the arrival of a new breed of investors in the Bitcoin arena, transforming it from a niche asset to a mainstream portfolio component.”

Meanwhile, Cathie Wood, whose firm was one of those that received an approval said that the SEC had opened a new chapter in the crypto industry. She said:

“This opens a new chapter for Bitcoin and I would like to believe we will be within the top three or two providers through this Bitcoin ETF.”

In a recent statement, an analyst at Standard Chartered said that the approval of a Bitcoin ETF would be a game changer. He expects that these ETFs could attract over $100 billion in inflows in the next few years. In this case, he sees the Bitcoin price surging to $250,000 in 2024. Such a move would push the total Bitcoin market cap to over $4 trillion.

Meanwhile, Tom Lee, the founder of Fundstrat, and one of the biggest Bitcoin bulls in the market, said that the funds could see inflow in the coming months. He also argued that people needed to find something you can trust in a trustless world.