According to Decrypt, a new report by blockchain data firm CryptoQuant suggests that the launch of a highly anticipated spot Bitcoin exchange-traded fund (ETF) next year could lead to a drop in the cryptocurrency's price. The Singapore-based company believes that the approval of the investment vehicle could be a 'sell the news' event, as investors are currently sitting on significant gains in the run-up to the potential launch. This may cause the price of Bitcoin to plunge to as low as $32,000 per coin, from its current price of $42,539.
The U.S. Securities and Exchange Commission is expected to approve a Bitcoin ETF soon, with Bloomberg Intelligence analysts estimating a 90% chance of approval by January 10, 2024. A spot Bitcoin ETF would allow people to gain exposure to the digital coin by buying shares that track the price of Bitcoin, making it more accessible for traditional investors who do not want to deal with buying or storing cryptocurrency. The SEC has been slow to approve such a vehicle due to concerns over market manipulation.
CryptoQuant also mentioned in an October report that the approval of a spot Bitcoin ETF could lead to a significant influx of fresh capital into the space, potentially increasing the market cap of the cryptocurrency to $900 billion. The current market cap is $832 billion, up substantially from the $550 billion reported when the October report was released.
