Benzinga - Bitcoin (CRYPTO: BTC) enthusiasts are buzzing with anticipation as the approval for the inaugural U.S. spot Bitcoin exchange-traded fund (ETF) inches closer, according to financial experts.
Nine asset management firms, including BlackRock, WisdomTree, and Valkyrie, are awaiting approval from the Securities and Exchange Commission (SEC) to issue a spot bitcoin ETF. Experts predict the first approval could materialize as early as 2024, reported CNBC.
Bitcoin’s price escalated to an 18-month high of $37,970 last week, following BlackRock’s initial steps towards an Ethereum (CRYPTO: ETH) ETF. The cryptocurrency’s value has more than doubled since the beginning of 2023.
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Bryan Armour, director of passive strategies research for North America at Morningstar, suggests that the approval of a spot bitcoin ETF would be the “best product on the market” for ETF investors, outclassing the currently available options that possess varying degrees of flaws.
Armour anticipates a “batch approval”, with several ETF listings happening simultaneously on the day the SEC gives the green light. He also predicts a possible bitcoin rally post-approval, although some investors might sell to reap profits, leading to a dip in price.
While the approval could make this asset class more accessible, experts advise investors to consider their risk tolerance and objectives before jumping in. A Nasdaq survey indicated that 72% of financial advisors would be more inclined to invest in crypto if spot ETFs were approved in the U.S.
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