Can Bitcoin ETF help Bitcoin price increase sharply later this year?

Bitcoin ETF is probably the most talked about topic of the time. Many consider it to be the main reason for the recent growth of the Bitcoin price. Even the Chief ETF analyst at Bloomberg, Eric Balchunas, also thinks that there is a high possibility that the U.S. Securities and Exchange Commission (SEC) will approve an ETF in late October and early November.

If SEC begins approving Bitcoin ETF, ProShares can launch on October 18

According to Balchunas, the SEC has a few days left to delay on Bitcoin futures ETFs. If nothing happens, the first ETF filed – ProShares – will be free to launch on October 18 as the 75 days req will have passed. That said, this is an unusual situation, but no news is probably good news.


Source: Eric Balchuna/Twitter

The SEC has inherently delayed many Bitcoin ETF submissions filed throughout 2021 from big names like Galaxy Digital and VanEck.

Although expected to bring significant gains for BTC this year, Balchunas stated that the crypto community might be overestimating demand for ETFs. He admits that if they were to hit the market, it would be a huge step forward. However, he expects to gross no more than $4 billion in the first year.

“THAT SAID, the crypto crowd may be overestimating the demand for these ETFs. It’s a big step, no doubt, but we see only $4b in the first 12mo (and some think that’s too high!), but that’s just 5% of crypto fund aum, 3% of bitcoin futures, and 1% of bitcoin market cap and 1% of all ETF flow”, he stated.


Source: Eric Balchuna/Twitter

He then mentioned Bitcoin futures ETF in Canada and compared its physically-backed peers. He thinks the U.S. will be dif bc futures ETFs will be the only game in town for a while; that’s why we say $4 billion.

“If physically launched at the same time, we’d drop that to <$100 million”, he added.

There has been no news from the SEC so far about these Bitcoin futures ETFs, but the expert says that, in this particular case, no news is probably good news. But you should keep in mind that while a spike in quick funding could boost Bitcoin’s potential price increase, it will still be a small part of an already growing industry.

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