Benzinga - A significant number of large asset managers are setting their sights on Bitcoin acquisition as anticipation for the launch of Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs) heightens.
What Happened: Yiannis Giokas, a high-ranking director at Moody's Analytics, a branch of Moody's Corp., stated that the recent Bitcoin price surge can be credited to the impending approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), reported Bitcoin.com. Giokas revealed that asset managers are preparing to buy Bitcoin in preparation for the launch of these ETFs.
Giokas conveyed in an email, “The race is heating up to launch these vehicles with large asset managers getting ready to acquire the underlying asset to offer the ETF to retail and institutional investors.”
See Also: From ‘Dogecoin Killer’ Shiba Inu’s Burn Rate Surge To Bitcoin’s ETF Approval And Possible BTC Boom: Crypto Weekend Roundup
Moreover, Bloomberg has forecasted a 90% probability of the SEC giving the green light to Bitcoin ETFs by Jan. 10. Discussions have been ongoing between the regulator and potential Bitcoin ETF issuers, including Blackrock, Ark Invest, and Grayscale Investments.
Industry insiders like Skybridge Capital’s Anthony Scaramucci and ex-NYSE President Tom Farley predict a considerable influx of capital into Bitcoin post the ETF launches. Yet, JPMorgan has cautioned that the new ETFs could place “severe downward pressure on bitcoin prices.”
Why It Matters: This development comes in the wake of Bitcoin’s significant price surge, exceeding the $41,000 mark, a milestone it had not reached in over 1.5 years. This year, Bitcoin achieved multiple annual highs, with a notable surge to $29,000 in March and $30,000 in June, when BlackRock filed for a spot Bitcoin ETF. The optimism surrounding Bitcoin has since remained, ensuring a steady increase, despite occasional slowdowns. This current scenario has led some analysts to predict a correction once the Spot Bitcoin ETFs are approved, stating that the current situation exhibits a "Buy the rumor, sell the news" pattern.
Read Next: This Solana-Based Meme Coin Just Reached All-Time Highs, Leaving Dogecoin, Shiba Inu In The Dust
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