Why is this time different?

A wave of optimism surrounding the legal acceptance of bitcoin exchange-traded funds (ETFs) in the United States has fueled price action in the crypto market in recent weeks.

But that could be just the beginning: if a Bitcoin ETF gets the green light from the US Securities and Exchange Commission (SEC), it will be a game changer in the history of digital assets.

The Spot Bitcoin ETF offers institutional investors a simple and streamlined way to gain exposure to Bitcoin and potentially explosive results in the Bitcoin market.

According to many analysts, the Bitcoin ETF space may experience a demand shock, which combined with the Bitcoin halving event next year, could create the new crypto bull market.

The SEC has rejected all Bitcoin ETF applications so far, but two main factors make the current set of applications different.

One is the involvement of BlackRock, the world's largest asset manager, which earlier this year filed for a Bitcoin ETF.

The second is a court decision that forced the SEC to reject Grayscale's previous application for a spot Bitcoin ETF, describing the regulator's process as “arbitrary and ridiculous”.

“The grayscale decision ultimately says you can't allow a Bitcoin futures ETF to trade, and then argue that the same is not the case for a Bitcoin ETF,” said Bloomberg Intelligence analyst James Seifert.

That's why, according to Seifert, the Bitcoin ETF acceptance rate at the beginning of January was 90%.

To understand why Bitcoin ETF approval is a big deal somewhere and its potential impact on the market, check out the full Cointelegraph report on our YouTube channel, and don't forget to subscribe!