The spot Bitcoin ETF application frenzy launched by BlackRock, the world's largest asset manager, last June, caused a significant rally in BTC and altcoins.
Although the SEC has not yet made a decision on spot Bitcoin ETF applications, investors and the market think there is a high probability that spot ETFs will be approved.
At this point, analysts state that the approval of spot ETFs is high and believe that a possible approval will be a significant catalyst for the BTC rally.
Some analysts think that a possible approval of spot Bitcoin ETFs is partially priced in.
One of them was David Duong, president of Coinbase Institutional.
According to Coindesk, David Duong argued in his latest report that the highly anticipated spot Bitcoin ETF approval was partially priced.
David Duong noted that BTC is outperforming other cryptocurrencies in part as investors price in the potential approval of spot Bitcoin ETFs.
“The difference in the performance of Bitcoin and other tokens suggests that the potential approval of one or more spot Bitcoin ETFs is partially priced in.
At this point, it remains unclear how much better Bitcoin will perform than other cryptocurrencies in the event of a favorable U.S. Securities and Exchange exchange, following the SEC's possible approval of spot ETFs.
Duong stated in the report that BTC may see a short-term decline in its dominance in the market following the possible spot ETF approval. Duong said that these views were based on the period after the forward Bitcoin ETF approval, which was approved in October 2021, and warned that the inflows to the eagerly awaited spot ETFs may spread over time.
*This is not investment advice.
