Several cryptocurrencies have been doing poorly this last month. However, the likes of Bitcoin, XRP, and Ethereum could see a huge surge soon. We could be coming up to one of the biggest months for crypto ever. This is linked to the possibility of a crypto ETF approval.
The recent huge rally over June and July proved to be temporary. August came with a significant price crash in these digital currencies. Analysts were hoping for a huge event that could cause an upswing. However, this did not come about in the end.
Some insiders in the SEC have indicated that they believe the approval of a crypto ETF is very likely. This is specifically for a spot Bitcoin ETF. In fact, they said it was inevitable.
According to this official, the main reason is because Bitcoin is not a security in their eyes. All sorts of individuals and institutions are interested in using it. This includes retail and institutional investors. A few of the most trustworthy financial institutions also have significant interest in this approval as well.
Revisiting the Past of Crypto ETF’s
A similar instance happened two years ago. In 2021, the SEC approved a Bitcoin ETF. What followed was a major rally in the value of XRP, Ethereum, and Bitcoin. In total, the crypto market value reached a height of $3 trillion for a time. Although this may have been a case of crypto bubbles, it could be a very telling indicator of what will happen this time aro,und too.
Others had also been making recent filings for spot Bitcoin ETFs. This includes the likes of WisdomTree, Invesco Galaxy, Vaneck, Bitwise, etc., all looking at crypto hedge funds. The SEC said they needed time to think about how to respond to all these filings last week.
A further indicator for approval would be the Greyscale court victory this last week. The court believed that the SEC had made some arbitrary decisions in rejecting their spot Bitcoin ETF.
