The market appears to be underestimating the potential of US spot Bitcoin ETFs, according to crypto research firm K33 Research.
K33 Research Says Crypto Market Undervalues Spot Bitcoin ETF
“This is a buyer's market and prices should have gone up,” K33 Senior Analyst Vetle Lunde and Vice President Anders Helseth wrote in a new report.
Approval of a spot Bitcoin ETF should attract “large” inflows and put significant buying pressure on Bitcoin, analysts said. On the other hand, they added, a rejection would only maintain the status quo.
“The market fundamentally undervalues great news,” analysts said.
Grayscale's latest legal victory in its ongoing fight against the Securities and Exchange Commission saw the agency delay seven spot Bitcoin ETF proposals from BlackRock, Fidelity, VanEck, WisdomTree, Invesco, Bitwise and Valkyrie until mid-October, before retreating 6%. It led to a brief market increase of .
Meanwhile, the Nasdaq, often seen as a barometer of the market's risk appetite, rose 2%.
Lunde and Helseth argued that the market should be bullish, given the likelihood of spot ETF applications being approved, with Bloomberg analysts predicting a 75% chance of approval this year.
However, looking at the prices, it seems that investors do not react much to this news at the moment.
Analysts said that while funding rates, CME base and next month premiums have been consistently below average since mid-August, sentiment in the crypto derivatives market remains negative, but this sentiment could change in an instant.
Additionally, analysts added that Bitcoin is now less volatile than the Nasdaq, S&P 500 and gold, and that an “explosion” in price volatility is imminent.
*This is not investment advice.
