What Will Change for Investors After the Bitcoin Spot ETF? Could there be a Surprise Price Impact? Analysts Explained

BTC price has soared in 2023 as investors eagerly await the approval of the first US spot Bitcoin exchange-traded fund (ETF), a development that experts say will be a major milestone for cryptocurrency investors.

In early December, BTC broke above $44,000 for the first time since April 2022.

Talks between the U.S. Securities and Exchange Commission (SEC) and asset managers hoping to list Bitcoin ETFs have gone down to technical details, leading some experts to believe approval could be imminent.

Bryan Armour, Morningstar North America Research Director for Passive Strategies, commented:

“For ETF investors, this would be the best product on the market. All other options currently have varying degrees of flaws.”

Armour: “Selling to Gain Profit May Come After Bitcoin ETF Approval”

If the SEC approves the spot Bitcoin ETF, Armor expects a “bulk approval” in which multiple ETF listings would occur on the same day. “I expect them to make decisions about spot ETFs holistically because most issuers take similar approaches to filings,” Armour said.

Armor also noted that there are many positive signs that the SEC is taking the latest filings more seriously. “I am more optimistic than ever about the Bitcoin ETF,” he added.

While some crypto investors expected a Bitcoin rally following approval, Armor warned that the price could fall as investors sell to collect profits. While SEC approval of the Spot BTC ETF could make the asset class more accessible to the public, experts urge investors to consider their risk tolerance and goals before investing.

Ben Smith, founder of Cove Financial Planning and a certified financial planner, said:

“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.”

*This is not investment advice.