According to Cointelegraph, analysts from crypto research firm K33, formerly Arcane Research, believe that the potential impact of a spot Bitcoin (BTC) exchange-traded fund (ETF) approval on prices is dramatically underestimated by the crypto market. In a September 5 market report, K33 senior analyst Vetle Lunde and vice president Anders Helseth stated that the last three months had significantly improved the chances of a spot Bitcoin ETF approval, although this sentiment is not reflected in the price of Bitcoin or other mainstay crypto assets.
The analysts explained that while Bitcoin had given up its gains following Grayscale's legal victory over the Securities and Exchange Commission, an approval would attract enormous inflows and significantly increase buying pressure for Bitcoin. However, they also noted that the downside of a potential spot ETF rejection would be negligible, and Bitcoin prices would simply maintain business as usual.
Lunde and Helseth added that given the increased likelihood of spot ETF approvals, with several Bloomberg analysts now predicting a 75% chance of approval within the year, the market's outlook on ETFs is fundamentally incorrect. They also expressed optimism for the price of Ether (ETH), stating that it appears likely to outperform Bitcoin over the next two months as it will benefit from strong momentum ahead of a futures-based ETF listing. The verdict on a futures-based Ether ETF is expected to be handed down in mid-October, which is reportedly set to receive the green light from the SEC.
