The price of BTC has surged in 2023 amid anticipation for the approval of the inaugural US spot Bitcoin exchange-traded fund (ETF), a crucial milestone according to experts.
In December, BTC surpassed $44,000, marking its highest level since April 2022. Ongoing discussions between the U.S. Securities and Exchange Commission (SEC) and asset managers aiming to list Bitcoin ETFs are delving into technical specifics, fueling optimism for imminent approval, as noted by Bryan Armour, Morningstar North America Research Director for Passive Strategies.
In his words; “For ETF investors, this would be the best product on the market. All other options currently have varying degrees of flaws.”_Bryan Armour
Massive Sellouts Expected After ETF Approval
Should the SEC greenlight the spot Bitcoin ETF, Armor anticipates a “bulk approval,” with multiple ETF listings granted on the same day. He foresees a comprehensive decision-making process due to the similarity in approaches among issuers.
Armor expressed heightened optimism, noting positive indications that the SEC is treating recent filings with increased seriousness.
Despite expectations of a Bitcoin rally post-approval, Armor cautioned that prices might dip as investors sell for profits. While SEC approval could enhance public accessibility to the asset class, experts emphasize the importance of investors assessing their risk tolerance and goals before diving into the market.
Ben Smith, the creator of Cove Financial Planning and a certified financial planner, remarked: “I think it depends on the investor. “If you are a more aggressive investor with a higher risk appetite, a spot BTC ETF could fit into a diversified portfolio.”
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