Financial experts at Cantor Fitzgerald suggest that a spot Bitcoin (BTC) exchange-traded fund (ETF) might soon become a reality.
This firm, renowned for its investment banking and prime brokerage services, is increasingly optimistic about the endorsement of proposals by asset managers wanting to introduce a spot ETF for Bitcoin, as mentioned in a Bloomberg News report.
Historically, the US Securities and Exchange Commission (SEC) has been cautious about greenlighting a spot bitcoin ETF because of worries regarding potential misconduct on international spot exchanges.
Yet, Cantor Fitzgerald is of the view that the enhanced market oversight methods suggested by new contenders might mitigate these concerns and incline the SEC to give the green light.
Analysts from the firm, Josh Siegler and Will Carlson, stress the necessity of crafting a “thorough surveillance-sharing arrangement with a sizable, regulated market” to satisfy regulatory authorities.
Cantor Fitzgerald predicts that the sanctioning of a spot ETF could notably influence the bitcoin price in the near term.
They regard this as a defining juncture for Bitcoin’s long-term acceptance and mainstream recognition.
The green light for a spot ETF is seen by the analysts as the primary immediate propellant for the crypto sphere.
Historically, the SEC has turned down numerous spot ETF proposals, referencing worries about insufficient inter-exchange data sharing to thwart market malfeasance.
Yet, BlackRock, having tabled its proposal in June, has forged a partnership with Coinbase to identify and tackle any market anomalies.
Bitcoin Price Surges Amid Optimism Around Spot Bitcoin ETF
In recent weeks, the buzz around a possible spot ETF approval has contributed to a noticeable uptick in Bitcoin’s value.
Earlier this month, the digital currency surged to around $35,000, propelled by market chatter about the potential green light for a spot ETF.
On a related note, Matrixport, a crypto financial service platform, anticipates a significant spike in Bitcoin’s value should a spot ETF be introduced.
Drawing parallels to the precious metals ETFs, which boast a market capitalization close to $120 billion, Matrixport posits that if 10-20% of these metal ETF investors mull over branching out into a Bitcoin ETF to counteract monetary dilution and inflation, we could see a capital influx ranging from $12 billion to $24 billion into the Bitcoin ETF.
“If Tether’s valuation grows by $24 billion, mirroring possible ETF influxes, Bitcoin’s value could climb to $42,000, a modest projection.”
Further evidencing the Bitcoin bullish trend, the premier cryptocurrency’s market hold has now achieved 54%, marking its peak in over two years.
Bitcoin’s dominance has been on a consistent uptrend, initiating from approximately 38% at the year’s outset. This comes in conjunction with its sustained rally throughout the year, witnessing the iconic cryptocurrency leap by 81% since the commencement of 2023.