The possible approval of a Bitcoin ETF is on the agenda of the cryptocurrency market. Market players are eagerly awaiting the SEC’s approval. However, this approval will not be a solution, according to the Bloomberg ETF analyst. Because the spot Bitcoin ETF product created from cash will not be able to attract more institutional funds. On the other hand, Bitcoin bull Cathie Wood announces a possible confirmation date. Additionally, she considers the short-term impact of this product to be a ‘selling opportunity’.
Bitcoin ETF cannot attract institutional investors under these conditions!
Max Keiser, a senior advisor to the President of El Salvador, denied Cathie Wood’s statement on social media that “if a spot Bitcoin ETF product is approved, it will attract more institutional investors.” Keizer said this statement was misleading. He also noted that all spot Bitcoin ETFs created with cash are merely proxy tools for investors to track the BTC price. Moreover, he underlined that they will not be able to obtain real BTC.
In contrast, a Bloomberg ETF analyst noted that if a Bitcoin ETF could actually be created with just cash rather than BTC (created with physical assets), most non-crypto users would not make a significant transaction. This is especially true for asset management institutions that control $33 trillion in assets. So, they actually prefer to make dollars and just want exposure. This gives Cathie Wood an opportunity.
Cathie Wood: Some investors will sell the news in the short term!
cryptokoin.comAs you follow from , expectations are rising regarding the potential approval of spot Bitcoin. According to Cathie Wood, the short-term impact of the potential spot Bitcoin ETF approval will not be encouraging. Because some investors will see the news as a selling opportunity. However, the long-term perspective is promising and more important. Wood makes the following statement regarding this issue:
This will be very short term. Because what we think will happen here is that the SEC will give the green light for institutional investors to participate in the spot Bitcoin ETF. (…) Those who enter Bitcoin and make good profits will probably ‘sell on news’. This is an expression used by traders. So you predict the event, push the price up, and then sell on the news.
According to ARK CEO, once approved, the spot Bitcoin ETF will become one of the easiest ways for institutions to access BTC. It will also allow them to allocate a small portion of trillions of dollars of assets to Bitcoin. According to Wood, the Bitcoin price will move significantly if institutional investors invest at least 0.1% or 0.2% of their assets in Bitcoin, which has a supply limit of 21 million coins. However, according to ARK Invest CEO, it is possible that ETFs could negatively impact the BTC price in the short term.
Possible confirmation date for Bitcoin ET: January 10
ARK Invest is one of 14 companies that have applied for a spot Bitcoin ETF product with the US SEC. ARK’s spot Bitcoin ETF, the ARK 21Shares Bitcoin ETF, was developed in collaboration with European crypto exchange-traded product provider 21Shares. In a recent interview, Wood states that spot Bitcoin ETF talks with the SEC have been “very positive.” He is more optimistic about the potential for the first spot Bitcoin ETF or ETFs to be approved by January 10.
“Something has changed in the last month to six weeks,” Wood said. says. He adds that the SEC has changed its approach to Bitcoin ETF reviews from silent dismissal to asking “thoughtful, detailed, technical questions.” According to Wood, this is a very positive move that has led to productive conversations with the SEC. “I think the outlook for a spot Bitcoin ETF is bright,” Wood said. “Also, we think it will happen in January,” he says.
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