What Impact will a Bitcoin ETF have on the BTC Price?

[Suba]

Bitcoin is becoming more massive every day. Apart from being a commodity asset traded on crypto exchanges, Bitcoin via ETFs is also bought and sold on stock exchanges and is recognized as a security. So basically Bitcoin ETF is a type of investment instrument and Bitcoin is treated like other securities and is traded on stock exchanges, such as NYSE, LSE, TSX, SEHK, SEHK JPA etc.

One type of Bitcoin ETF that is currently being hotly discussed is the Bitcoin Spot ETF, so investors can buy directly or hold Bitcoin for each share they own. Until the time this thread was published there was no Bitcoin Spot ETF that was recognized and traded on the stock exchange. The SEC always rejects it for various reasons such as market manipulation, risk of fraud, lack of regulation, etc.

 

[Suba]

A Bitcoin ETF (Exchange-Traded Fund) may have a favorable effect on BTC values by becoming more widely available and embraced. It might draw in institutional investors, increasing demand and causing the price to rise.

You are right, besides what you have mentioned, another impact of the Bitcoin ETF is diversification because the ETF can consist of shares, bitcoin and bonds and of course it will reduce investor risk. In the long term, crypto assets will also continue to grow because more and more investors are adopting crypto.

 

[Goldynn89]

The ETF approval will bring more cautious investors, those with big money into crypto which is why it's been highly anticipated. Coming right around the potential beginning of a bull run, this could also be the catalyst to catapult Bitcoin further.