Fox Business correspondent Charles Gasprino has commented on the @SECGov’s decision regarding the $BTC “spot” ETF, stating that it is expected to be released “hopefully next week”. As the crypto community awaits the SEC decision on the spot Bitcoin ETF, expected within the next week, there still remains uncertainty about its potential ramifications.
The much-awaited approval of a spot Bitcoin exchange-traded fund (ETF) in the United States has earlier been pushed to January by the SEC. Analysts project that the approval could prompt a surge in demand from institutional investors, potentially causing a substantial reduction in available Bitcoin supply.
However, industry insiders caution that securing a vast amount of Bitcoin may prove challenging. Valkyrie CEO Leah Wald commented that it is not practical to acquire the entire circulating supply, pointing out that Bitcoin’s decentralized nature and the reluctance of many holders to sell at any price act as natural barriers against monopolization.
Bitwise’s Chief Investment Officer, Matt Hougan, echoed this sentiment, citing the scarcity principle, which means that the price of the asset will rise to meet the demand. While acknowledging the potential to corner a significant portion of Bitcoin, he highlighted the inherent difficulty in monopolizing the entire supply.
Despite the competitive landscape among potential spot Bitcoin ETFs, there is skepticism about SEC’s intent to corner the entire Bitcoin market. David Gerard, author and crypto blogger, views ETFs as tools for leveraging Bitcoin as a dollar derivative rather than expressing genuine interest in the cryptocurrencies themselves.
Concerns are also raised by figures like BitMEX co-founder Arthur Hayes, who fears that successful ETFs could “completely destroy” Bitcoin. ARK Invest CEO Cathie Wood suggests that investors might “sell on the news” of spot Bitcoin ETF approval, potentially affecting short-term market dynamics.
The community recalls older estimates from crypto entrepreneur Lark Davis anticipating an influx of up to $30 billion into Bitcoin, with spot Bitcoin ETF issuers expected to acquire approximately 50% of the total Bitcoin available on exchanges to secure their ETFs.
However, some argue that the impact of a spot Bitcoin ETF approval in the U.S. may not be as profound as anticipated. Comparisons to existing spot Bitcoin ETFs trading in countries like Canada are drawn, although analysts caution that the sheer size of U.S. capital markets could lead to unprecedented consequences.
