Bitcoin ETF: Has the market already anticipated the SEC's decision?

IMPORTANT POINTS:

The SEC could make decisions on Bitcoin ETFs before the end of 2023.

Coinbase claims that they have already “partially factored” into their pricing the potential regulatory support for a Bitcoin ETF.

The GLD gold ETF is used as a historical benchmark to compare investment flows after its approval.

A recent analysis on Bitcoin (BTC) has created a stir in the crypto community. David Duong, head of institutional research at Coinbase, suggests that a potential regulatory support for a Bitcoin ETF in the US is already “partially factored” into the price of the leading crypto asset.

The divergence in performance between Bitcoin and the altcoin market indicates that participants are already anticipating the approval of one or more Bitcoin ETFs. On the other hand, Duong notes that Bitcoin may not soar as much as traders expect when a spot ETF is approved.

SEC Decision

The SEC delayed decisions on a number of Bitcoin ETF applications, including BlackRock's, to late September. However, the final deadline to review an application, the ARK 21 Shares Bitcoin ETF, is January 10.