The impact of BTC spot ETFs is as follows ¹ ²:
- Increased legitimacy: With the approval of spot bitcoin ETFs, bitcoin is now seen as a more legitimate asset class.
- More liquidity: ETFs buying and selling large blocks of bitcoin based on demand could increase liquidity and help stabilize prices.
- Increased prices: The increased demand and purchasing of bitcoin by these ETFs could boost the price over the long term.
- Lower trading fees: With more adoption and ease of access through a spot ETF, investors may be able to access bitcoin at a lower cost.
- Increased adoption: The ease of access to bitcoin through spot ETFs could lead to increased adoption.
- Increased institutional investment: Spot bitcoin ETFs offer institutional investors a way to invest in bitcoin.
- Correlation with gold: Bitcoin's appeal as digital gold can be seen by its changing correlations to traditional assets like gold.
- Decoupling from traditional equity indices: Bitcoin's negative correlation to traditional equity indices like the S&P 500 and the Nasdaq Composite underscores its growing appeal as a diversifier and a hedge against market volatility.