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The Bull Case For a Bitcoin Spot ETF
There's a good chance the BlackRock ETF goes through. If that's the case, this will be the foundation for the beginning of the next crypto bull market.
If you’re not bullish on the Bitcoin Spot ETF filing, you’re not looking hard enough. This will be the foundation for the next bull market if it goes through. Let’s discuss why.
We’ve seen Bitcoin Futures ETFs, but a spot ETF would be the first of its kind. This avoids drag and gets investors direct exposure to Bitcoin with Coinbase as the custodian.
On BlackRock
The SEC has denied multiple spot ETF attempts before from Fidelity and Grayscale amongst others, but BlackRock is a beast of its own. BlackRock is the largest asset manager in the world with $10T AUM.
Fun fact: BlackRock's record of getting ETFs approved by the SEC is 575-1. That's another reason this is so big, they don't play around.
— Eric Balchunas (@EricBalchunas)
1:00 PM • Jun 16, 2023
BlackRock is working with NASDAQ and covering all their bases. The worry of market manipulation was cited as a main reason by the SEC why previous spot ETFs were denied. It’s clear they’re doing everything in their power to make sure this gets done.
NOTEWORTHY: BlackRock is teaming up with Nasdaq to enter a surveillance-sharing agreement, which would mitigate manipulation. This is interesting as no one has done this in a filing before. Great catch (yet again) by @CoinDesk coindesk.com/business/2023/…
— Eric Balchunas (@EricBalchunas)
3:45 PM • Jun 16, 2023
The 99.8% approval rate is no guarantee of the filing going through, but these are favorable odds. We’ll have notice of an approval/rejection by February 2024.
The SEC's approval/rejection of the Blackrock ETF would come by February 2024, within 240 days of filing in the Federal Register.
👇
The SEC has a maximum of 45 days from the date of filing to publish a notice of the application in the Federal Register. After this initial… twitter.com/i/web/status/1…
— Alex Krüger (@krugermacro)
9:53 PM • Jun 15, 2023
The filing for this ETF is oddly good timing considering that the next Bitcoin halving will occur April 2024. Bull markets have come after the last three halvings.
Concluding Thoughts
If you don’t see the sheer significance of this, please show me where the bear market hurt you. The Bitcoin Spot ETF is where the real capital inflows begin. $BTC has been down only on exchanges since late 2019.
If this ETF were to pass, an Ethereum ETF wouldn’t be far behind. These funds would form the groundwork for frictionless crypto exposure in TradFi, no hardware wallet required.
The synergy of a spot ETF and Bitcoin halving would result in a significant liquidity drain of Bitcoin. With these two events, we’ll hopefully see another bull market come 2025 and you’ll get to dump on boomers @DegenSpartan style. Godspeed, anon.
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