The cryptocurrency community is gearing up for a pivotal announcement from the U.S. Securities and Exchange Commission (SEC) regarding the approval of spot Bitcoin exchange-traded funds (ETFs).
John Palmer, President and CEO of CBOE Digital, a separate entity under CBOE Global Markets, spoke on a recent television show where he discussed the potential ramifications and overall impacts of this decision.
CBOE Digital, unlike its parent company, serves as the exchange for spot Bitcoin ETFs but is not directly involved in the launch process. However, Palmer argued that his organizations would benefit significantly from the expected approval of these ETFs.
Palmer expressed optimism, noting that there has been visible progress and positive interactions between regulators and ETF issuers in recent weeks.
As discussions revolved around potential confirmation scenarios, Palmer brought up several possibilities. According to Palmer, the SEC could approve multiple ETFs at once or opt for gradual approvals, with different rule applications having different evaluation dates.
When asked about the impact on Bitcoin's price post-approval, Palmer struck a cautious but optimistic stance. While acknowledging the recent significant price increase, he said he expects further upward movement following ETF approval. However, he refrained from specifying the exact size, citing the unpredictable nature of capital inflows into the ETF.
Answering questions about long-term Bitcoin price predictions, Palmer said that capital flows into ETFs and the stable supply of BTC are the key factors. Although the analyst is optimistic about the increased participation in the cryptocurrency market thanks to ETFs, he stated that he is not in favor of the idea of a sudden price increase due to Bitcoin's current market value.
*This is not investment advice.