Approval date and price forecast

Sentiment is at an all-time high regarding the approval of a US-based space Bitcoin ETF (Exchange Traded Fund). With Bloomberg Intelligence estimating a 90% chance of getting a nod from the Securities and Exchange Commission (SEC) on January 10, 2024, the crypto market is racing.

The acceptance of such a product could create a new dawn for Bitcoin's price trajectory, which could reach $150,000.

Institutional interest is growing for Bitcoin ETFs

BlackRock's seed whispers of its Bitcoin ETF have sent tremors through the crypto market. Next, pushing the price of Bitcoin above $35,000. A figure not seen in 18 months and a stark contrast to Ethereum's 50% year-to-date growth.

Bitcoin's recent rise in price, which saw a 27 percent increase in October, indicates a buoyant market. Indeed, this speculation reflects a broader sentiment that the US is on the cusp of adopting Bitcoin ETFs. This is consistent with a more progressive stance in Canada and Europe.

“Institutional spot demand for the Bitcoin ETF is stronger than ever. For many institutions, when – if – the SEC will approve a Bitcoin ETF, “Diego Monica, president of Anchorage Digital.

The approval could withstand the impact of the recent crypto boom. Thus, it opens a smooth path for US companies to enter the crypto industry. This move could see large trading firms such as Jane Street, Virtu Financial and others providing liquidity to BlackRock's Bitcoin ETF, further bolstering the market's volatility.

Currently, the way US investors approach Bitcoin exposure is related to futures, options and other derivatives. Notably, the Greyscale Bitcoin Trust (GBTC) is a beacon that boasts over $21 billion in assets under management (AUM). However, the demand for ETFs with exchange trading characteristics and liquidity is undeniable.

Read More: How to Trade Bitcoin Futures and Options Like a Pro

GBTC's move to an ETF is a fascinating example of this, a move that has been executed by other companies such as Fidelity, Invesco and VanEck, all of which are awaiting the SEC's green light.

Bitcoin Price Prediction: Targeting $150,000

Amidst this backdrop, the SEC's involvement, particularly the failure to appeal the outcome of the Gray case, hints at a favorable ruling to come.

“The market has been waiting to see if the SEC will appeal the Grayscale ruling. Now that the SEC has chosen not to appeal and is actually actively responding to edits or comments on ETF applications, the chances of an approval on January 10 seem very likely,” he wrote.

The implications of such an endorsement are profound. BlackRock's iShares Bitcoin ETF could usher in a new era of institutional participation, which could create a supply crunch, with a capped production of 21 million Bitcoin. This, combined with the halving event coming in six months, could create a perfect storm for price appreciation.

Bitcoin ETF's growing momentum, contrasted with historical performance around halving events, sets a compelling narrative. According to Bernstein analysts, the narrative of the new cycle in which the price of Bitcoin can rise to 150,000 dollars by the middle of 2025.

A combination of favorable regulatory change, institutional flux and internal supply dynamics may make this an uphill battle.

“We expect US-regulated ETFs to be a watershed moment for crypto, and we expect SEC approval by the end of 2023/Q1, 2024. After the halving, demand for Bitcoin points through ETFs will sell at a high of 6-7 times. We expect Bitcoin ETFs to spread in 2028.” Spot Bitcoin will be equal to 9-10%,” Chugani added.

Read more: How to buy Bitcoin (BTC) and everything you need to know

Beyond the price implications, the adoption of a Bitcoin ETF could represent a major step forward for mainstream adoption. Direct access to Bitcoin through an exchange-listed instrument is a milestone, similar to accessing the value of gold through physical gold-backed ETFs.

It is a move to simplify Bitcoin investment by providing the direct link that has been eagerly awaited by crypto enthusiasts.

However, amidst the optimism, prudence is paramount. As the crypto market approaches ETF approval, investors should be aware of the volatility and tread carefully. The journey to $150,000 is fraught with promise and peril, typical of the Bitcoin saga.