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What happens If ETF gets approved? ETF has been a buzzword lately. We frequently see news about it but many of us don’t pay much attention. This is actually big news for the crypto markets. Perhaps, the bull footsteps may be passing through ETFs. So we will see in this article what happens if ETF gets approved?
WHAT IS AN ETF?
“ETF” stands for exchange-traded fund. Think of it this way: you have a pencil and give the price right to someone, not in a physical sense. The person with the price right buys and sells at the current price of that pencil and makes a profit. But they do not own the pencil. The working mechanism in Bitcoin will be similar. People will be able to buy and sell Bitcoin without the need for large crypto exchanges, even from the stock exchanges they have at hand. This is good news for our market. Because the entry of the middle and older age group into the market may indicate that the volume may increase.
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WHAT TO EXPECT IF THE ETF IS APPROVED?
We are constantly witnessing news that Bitcoin ETFs are being delayed. They will probably use all the possible delay periods. With these short delays, they will also prevent Bitcoin declines.
Let’s first examine the nearest important decision dates together:
Bitwise – October 16
BlackRock, Fidelity, VanEck, WisdomTree, Invesco – October 17
Valkyrie – October 19
Suppose BlackRock got the ETF approval, this company alone manages $10 trillion in assets. The market cap of all cryptocurrencies is only $1 trillion (including altcoins), i.e. 10 times less. We can witness significant increases if these ETF approvals come – which will come in 2024 since we know many SEC members in the US look favorably on approval – we might see a breathless rise to $35-40k. There is also clearly a gap point at $34k.
The approval of ETFs will bring in new investors to the market and also create a sense of security. On the other hand, the expected ‘Mega Bull’ will also significantly increase the market cap of crypto assets.
A non-volatile asset like gold experienced a full %300 increase after ETF approval. What happens if assets with high volatility like the crypto market get this approval? We will learn the answer to this question very soon.
On the contrary, if the ETF is not approved; troublesome days may be awaiting us in the market. We closely witnessed how much decline even the rumor brought. This possibility may be remote because many people in the US are now favorable towards Bitcoin ETFs.
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