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Bitcoin ETF approval and impact (and a statement of position in sec)
Gstory 2024. 1. 11. 23:34목차
The era of the ‘Bitcoin Spot Exchange Traded Fund (ETF)’, which has been considered the biggest positive factor in the coin market, has finally begun. As this is a large-scale event that will accelerate the popularization of Bitcoin investment, new funds are expected to explode. According to foreign media such as CNBC and Reuters on the 11th, the U.S. Securities and Exchange Commission (SEC) approved the Bitcoin Spot ETF on the 10th (local time). The SEC announced in a statement today that it has approved 11 Bitcoin spot ETFs that previously applied for listing, including Grayscale, Bitwise, and Hashdex.
Statement from Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC).
Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), also announced his position on the SEC's official website on this day. He said in a statement that day, “The SEC today approved the listing and trading of a number of Bitcoin spot exchange-traded product (ETP) stocks,” and “Bitcoin spot ETP operators must provide fair and truthful disclosure about the products.” “And exchanges must establish rules to prevent fraud and market manipulation,” he said.
In his statement, he consistently used the term ETP, not ETF. The basis for approval was the loss of a lawsuit against Grayscale in August of last year. Chairman Gensler said, “We act within the bounds of the law and in accordance with how the court interprets the law,” and added, “Until March of last year, the SEC refused to approve more than 20 trading rule change (19b-4) forms for Bitcoin spot ETP.”
“However, the situation changed when Grayscale GBTC lost a lawsuit related to spot ETP conversion,” he explained. At the same time, he acknowledged, “The court judged that the reason for the SEC’s refusal was unclear and the explanation for it was not appropriate,” and added, “I think the way to continue in this situation is to approve the listing and trading of Bitcoin spot ETP.”
‘130 trillion won’ will flow into the coin market
The most expected change with this approval is a large influx of new funds. This is because Bitcoin, which had previously only been purchased on virtual asset exchanges, can now be invested through ETF products.
In particular, financial institutions can utilize existing financial infrastructure and approach it like a commodity ETF. Accordingly, it is expected that there will be a significant inflow of funds from institutional investors who were hesitant to invest in Bitcoin due to regulatory uncertainty. Currently, the amount of inflow funds predicted by traditional financial companies alone exceeds 130 trillion won.
Standard Chartered (SC), a large British bank, said in a report on the 8th (local time), "If the Bitcoin spot ETF is approved, up to $100 billion (131 trillion won) will flow in this year alone." “This is an opportunity to generalize Bitcoin investment,” he analyzed.
Hong Seong-wook, a researcher at NH Investment & Securities, said, “A variety of scenarios are possible for the inflow of new funds. Assuming that this is a very optimistic scenario and that 1-3% of global ETF funds will inflow in the mid- to long-term, the amount will be approximately 100 to 300 billion dollars (396 trillion won).” “Its scale,” he diagnosed. Currently, global ETF assets under management (AUM) are approximately $10 trillion (KRW 1,210 trillion).
Trinito, a domestic virtual asset investment company, said, “The launch of the spot ETF is the biggest event that increases accessibility for institutional investors,” adding, “Some of the assets of U.S. institutional investors, worth about $50 trillion (6,070 trillion won), flowed through the Bitcoin spot ETF.” “It could be possible. We can also expect the incorporation of some of the US stock market investment worth a total of 46 trillion dollars (6.812 trillion won),” he predicted.
The market was immediately excited. Bitcoin began to rise from the previous day due to expectations, and soared by nearly 3% immediately after the news of approval came out. As of 7 am on this day, Bitcoin is trading at 62.28 million won, up 2.88% from the previous day.
Bitcoin is now aiming for 200 million
Additional increases are expected due to the inflow of funds that causes price increases. In particular, there are predictions that with this approval, Bitcoin will exceed 100 million won per piece and reach 200 million won. The analysis that the half-life approaching in 100 days will drive this is also gaining strength.
Bernstein, an American investment bank, said in a report on the 4th, "Bitcoin is expected to break a new record this year and rise to a maximum of $150,000 (KRW 198.15 million) by 2025, " adding, "Capital as a virtual asset in the traditional market. “We are entering an unprecedented era of this massive inflow. In particular, bullish ingredients such as Bitcoin halving and ETF marketing still remain in abundance,” he said.
Robert Kiyosaki, author of the world's bestseller 'Rich Dad, Poor Dad', also said, "I'm glad I bought Bitcoin a few years ago, " and predicted, "With the approval of the spot ETF, Bitcoin will soon reach $150,000."
SC also predicted in a recent report that “the price of Bitcoin will soar to $200,000 (262.1 million won) by 2025.”
Researcher Hong said, “The key driver of Bitcoin price is the inflow of funds from spot ETFs,” and predicted, “As major events such as halving, US fiscal issues, presidential election, and debt ceiling negotiations continue after 2024, the price will trend upward.”.
https://www.youtube.com/watch?v=lgmGyD8pLKw&ab_channel=CNBCTelevision
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