Bitwise predicts that within a couple of weeks, the first of the largest investment platforms will add access to spot bitcoin ETFs. And within a few months, all the pioneer’s competitors will be doing this. How will this change the market? How will it affect the BTC price? And how much will this increase the demand for crypto products?
Access to spot Bitcoin ETFs may have the following consequences:
1. Sharp rise in demand for bitcoin as investors will be able to easily and safely invest in BTC through regulated ETFs.
2. Higher demand usually leads to an increase in the price of the asset. If demand for bitcoin surges thanks to retail investors coming in through ETFs, it could push the price of BTC higher due to possible scarcity following the halving event.
3. The introduction of spot bitcoin ETFs on a major platform will legalize cryptocurrencies as an asset class in the eyes of many investors. This could attract significant inflows to the crypto industry as a whole.
4. If the first major platform successfully introduces a spot bitcoin ETF, according to various estimates, within a few months, other competitors will follow suit. This will enhance all the effects noted above.