The application for Bitcoin spot ETF has attracted much attention for two reasons:

• The successful approval of the Bitcoin spot ETF will cause the price of Bitcoin to rise sharply, reaching a high of $35,000, and the increase is expected to reach 25%-30%.
• The successful approval of the Bitcoin spot ETF represents the expansion of cryptocurrency-compliant investment channels. Bitcoin spot ETF is expected to become the most popular cryptocurrency investment product among investors in 2023.

Promote price increases

If the Bitcoin spot ETF is successfully approved and issued, it will push the price of Bitcoin to rise sharply again, touching 35,000 dollar highs. The increase is expected to be 25%-30%.

The issuance of Bitcoin spot ETFs can attract a large amount of funds from traditional markets to flow into the Bitcoin market, thus increasing the liquidity of Bitcoin. This is equivalent to opening a huge hole between the two markets, and funds will be continuously introduced into the Bitcoin market. The most subjective result brought about by the introduction of large amounts of liquidity is the rise in Bitcoin prices.

So, what is the approximate range for price increases? According to estimates, if all applications from these eight institutions are approved, the market value of Bitcoin is expected to increase by nearly 0.145 trillion. By then, Bitcoin price is expected to reach a new ATH above $35,000, a gain of nearly 25%.

Note: When estimating, we used the total assets of GBTC as reference data. Currently, the total assets of GBTC are approximately 18.3 billion. According to this data, the liquidity that 8 Bitcoin spot ETFs may bring to the Bitcoin market is approximately 0.145 trillion.

At the same time, the positive sentiment brought to the market by the issuance of spot ETFs has a certain probability of triggering large-scale fund-raising. The entry of giant whales will further increase the price of Bitcoin.

Expand compliant investment channels

Another important significance of the successful approval of the Bitcoin spot ETF is its expansion of compliant investment channels for cryptocurrency.

Currently, compliant cryptocurrency investment products in the United States are mainly derivatives, and there are very few compliant investment products based on spot cryptocurrency. If the Bitcoin spot ETF is successfully issued, it will bring new cryptocurrency-compliant investment channels to investors and accelerate the inflow of funds.

According to a Bitwise and VettaFi survey of financial advisors about cryptocurrency investing earlier this year, more than 68% of advisors said they preferred ETFs as a way to hold cryptocurrencies. At the same time, Bitcoin also ranked as the crypto asset that financial advisors are most interested in (41%).

Therefore, the Bitcoin spot ETF is expected to become the most popular cryptocurrency investment product among investors after its issuance, and will be allocated by investors into their own asset portfolios.