{"id":332938,"date":"2021-08-31T22:20:00","date_gmt":"2021-08-31T19:20:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-a-bitcoin-etf-approval-will-be-a-game-changer-for-btc-price\/"},"modified":"2021-08-31T22:20:00","modified_gmt":"2021-08-31T19:20:00","slug":"3-reasons-why-a-bitcoin-etf-approval-will-be-a-game-changer-for-btc-price","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-a-bitcoin-etf-approval-will-be-a-game-changer-for-btc-price\/","title":{"rendered":"# 3 reasons why a Bitcoin ETF approval will be a game changer for BTC price"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aa814024ed\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aa814024ed\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-a-bitcoin-etf-approval-will-be-a-game-changer-for-btc-price\/#Not_every_fund_can_invest_in_Grayscales_GBTC_Trust\" >Not every fund can invest in Grayscale&#8217;s GBTC Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-a-bitcoin-etf-approval-will-be-a-game-changer-for-btc-price\/#Investors_will_gradually_exit_fixed_income_strategies\" >Investors will gradually exit fixed income strategies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-a-bitcoin-etf-approval-will-be-a-game-changer-for-btc-price\/#Commodity_funds_are_the_best_candidate\" >Commodity funds are the best candidate<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why a Bitcoin ETF <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval will be a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> changer for BTC price <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Some financial experts believe that the price of cryptocurrencies is solely driven by investors&#8217; speculation, and in the past few years detractors have suggested that fixed income instruments like treasury bills have no relation to do with digital assets. This point of view is fairly accurate because, at this time, most investors from the asset class are not allowed to invest in Bitcoin (BTC) and altcoins.<\/p>\n<p>Public pension funds, retirement plans, fixed income and most non-leverage equity and multimarket mutual funds can only invest in certain asset classes. These limits arise from the fund class regulation, the fund&#8217;s own bylaws, and the administrator&#8217;s risk assessment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Not_every_fund_can_invest_in_Grayscales_GBTC_Trust\"><\/span>Not every fund can invest in Grayscale&#8217;s GBTC Trust<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Unbeknownst to most, the mutual fund manager does not have absolute control of the investment decision. The fund administrator is a third-party company that acts as an inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ry between the fund manager and investors to verify and distribute assets tied to investments. <\/p>\n<p>Therefore, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/docs.google.com\/document\/d\/1n8sSfhZWwE2TB5rSAurqK1qLhWwXba_qx8lHe9X1hwo\/edit?usp=sharing\">fund administrator might rule that a particular instrument poses a significant risk<\/a> and either limit the exposure or deny access to it. The trust fund, in this example, is the investment vehicle used by the Grayscale Bitcoin (GBTC), and it involves an issuer credit risk. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/872038c7-d59e-4b38-8dcd-b98047ddb032.png\"><figcaption style=\"text-align: center;\"><em>Amundi funds breakdown by asset class. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/about.amundi.com\/Discover-Amundi\"><em>Amundi.com<\/em><\/a><\/figcaption><\/figure>\n<p>Global asset managers will typically have a 30% to 60% fixed income exposure, so it is very unlikely to have any exposure to cryptocurrencies. Amundi, the leading European investment firm with over $2.1 trillion of assets under management, is a good example.<\/p>\n<p>According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bcg.com\/en-br\/publications\/2021\/global-asset-management-industry-report\">BCG Group<\/a>, the global asset industry has surpassed $100 trillion, with North America holding nearly 50% of this figure. Unfortunately, these astronomical figures cause analysts to incorrectly relate those numbers to the Bitcoin ETF instrument.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Grayscale?src=hash&amp;ref_src=twsrc%5Etfw\">#Grayscale<\/a> has partnered BNY Mellon, the world&#8217;s largest custodian bank with $41 Trillion in assets in custody. In Feb 2021, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/BNYMellon?src=hash&amp;ref_src=twsrc%5Etfw\">#BNYMellon<\/a> announced they were entering the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Crypto?src=hash&amp;ref_src=twsrc%5Etfw\">#Crypto<\/a> space. Big move by Grayscale in the battle for a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> ETF.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Grayscale?ref_src=twsrc%5Etfw\">@Grayscale<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BNYMellon?ref_src=twsrc%5Etfw\">@BNYMellon<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/etf?src=hash&amp;ref_src=twsrc%5Etfw\">#etf<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/bitcoinetf?src=hash&amp;ref_src=twsrc%5Etfw\">#bitcoinetf<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/RfSO7UOKGS\">pic.twitter.com\/RfSO7UOKGS<\/a><\/p>\n<p>\u2014 Thinking Crypto &#8211; YouTube Channel &amp; Podcast (@ThinkingCrypto1) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ThinkingCrypto1\/status\/1415031874314031107?ref_src=twsrc%5Etfw\">July 13, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Reuters, more than half of all investment-grade corporate bonds in the eurozone now <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/article\/eurozone-bonds-negative-idUSL8N2P94FR\" data-amp=\"https:\/\/mobile-reuters-com.cdn.ampproject.org\/c\/s\/mobile.reuters.com\/article\/amp\/idUSL8N2P94FR\">trade with negative yields<\/a>. This includes $7.7 trillion worth of government debt and accounts for 70.8% of the total.<\/p>\n<p>Financial Times has reported that the value of the global negative-yield debt has surpassed <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/43280fe3-b6cd-44e1-bb75-25b0962b5ba1\">$16.5 trillion<\/a>, fueled by investors&#8217; more pessimistic outlook and bond purchases by central banks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Investors_will_gradually_exit_fixed_income_strategies\"><\/span>Investors will gradually exit fixed income strategies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There&#8217;s reason to believe that investors getting negative yields will eventually move to riskier assets, although it is improbable that a total shift to cryptocurrencies will occur. However, the most likely beneficiaries are non-leverage multi-assets and alternative investments as these instruments usually carry lower risk than equities and high-yield structured assets and bonds.<\/p>\n<p>Consequently, an eventual Bitcoin ETF approval by the U.S. Securities and Exchange Commission (SEC) will open the doors for a vast array of funds that are currently shut out from cryptocurrency exposure. <\/p>\n<p>Even if the ETF is exclusively reserved for a part of the equities and multi-asset classes, the new instrument doesn&#8217;t need to capture $500 billion to propel Bitcoin&#8217;s market capitalization above $2 trillion. Less than 2.5 million coins are deposited on exchanges, equivalent to $125 billion readily available for trading.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Commodity_funds_are_the_best_candidate\"><\/span>Commodity funds are the best candidate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ishares.com\/us\/insights\/etf-trends\/whats-been-driving-commodities\">iShares<\/a>, the value of global commodities exchange-traded products adds up to $263 billion. Considering not every mutual fund is listed, it is reasonable to assume that the actual number surpasses $500 billion. <\/p>\n<p>This means that a mere 1% allocation from this specific asset class is equal to $5 billion, and such an investment would surely be enough to propel the Bitcoin price above its $65,000 all-time high.<\/p>\n<p>If and when a BTC ETF is approved, traders will front-run the potential inflow as soon as the approval is announced, regardless of whether the products capture only $5 billion in the first couple of months. <\/p>\n<p>As long as governments and central banks continue injecting liquidity, buying bonds and issuing stimulus packages, there will be a gradual inflow to riskier assets, increasing the demand for the ETF.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-why-a-bitcoin-etf-approval-will-be-a-game-changer-for-btc-price\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why a Bitcoin ETF approval will be a game changer for BTC price &#8221; Some financial experts believe that the price of cryptocurrencies is solely driven by investors&#8217; speculation, and in the past few years detractors have suggested that fixed income instruments like treasury bills have no relation to do with digital&#8230;<\/p>\n","protected":false},"author":1,"featured_media":332939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvMDllMmU1ODMtM2MzZi00MmRlLTgyYzktMWYxOWU5YTU3NTBhLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74858,74863,75849,76550,74939,74898,73785],"class_list":["post-332938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-bitcoin-regulation","tag-cryptocurrencies","tag-etf","tag-grayscale","tag-market-analysis","tag-sec","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/332938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=332938"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/332938\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/332939"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=332938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=332938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=332938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}