#Bitcoin ETFs Are Finally Here. Crypto Investing Will Never Be The Same.

When regulators finally opened the starting gates for spot bitcoin ETFs to trade, existing funds that converted to the new model surged, new funds racked up trading volume and bitcoin prices bolted higher. Then, by the end of the first trading Thursday, most of the funds lost ground.

The Securities and Exchange Commission officially approved 11 spot bitcoin ETFs for trading late Wednesday. Trading kicked off early Thursday on the NYSE, Nasdaq and Chicago Board Options Exchange. The funds, all spot bitcoin ETFs, directly purchase and hold bitcoin assets.

The new spot bitcoin funds are expected to increase direct demand for bitcoin and lure institutions and other new investor classes into cryptocurrencies and other digital assets.

We are at the beginning of the first-ever institutional bull market in crypto — and spot ETF momentum is a key part of the momentum," said Diogo Monica, president and co-founder of Anchorage Digital. Anchorage helps institutions buy, store and manage digital assets.

Sell The News Of Bitcoin ETFs?

The recent bitcoin reversal was unsurprising for Cathie Wood, who predicted the first wave of approvals could see the bitcoin price drop as investors take profits.

"There has been a big anticipatory move," Wood told Yahoo Finance. "Those who have been moving in and enjoying some nice profits will probably sell on the news."

But that is just in the short term. Wood thinks institutions have been hesitant to participate in crypto before the SEC approves a spot bitcoin ETF. "All we need is for the trillions of dollars in institutional assets out there to allocate maybe 0.1% or 0.2% to an ETF," Wood said. "And that will move the price significantly."

#Bitcoin Price Outlook

Despite concerns of short-term dips, the consensus is that the spot bitcoin ETF approval and bitcoin halving will be positive catalysts in 2024.

VanEck forecasts bitcoin will reach an all-time high in November this year, three years after its previous record of $69,000 in November 2021.