Bitcoin has been sold-off on every rally recently, and positive news has not had any long-term lasting effect on the top crypto.
With that said, rumors started to hit the market on Friday on social media, that the BlackRock spot ETF had already been approved.
Although no price impact thus far, this speculation has the potential to be a game-changer for both retail and institutional investors.
An ETF ( approval from a heavyweight like Blackrock would lend immense credibility to Bitcoin, possibly triggering a strong buying momentum that simply won't stop. With its enormous political capital is positioning itself to be the first spot ETF approval in the market.
Let us not forget that BlackRock, having already partnered in 2022 to offer institutional clients crypto access and later launching its own spot Bitcoin private trust, appears to be at the forefront of this financial revolution, so it is credible to suggest an approval is coming.
Former SEC Chair Jay Clayton has recently said "a Spot Bitcoin ETF approval is inevitable". This is obviously a very bullish statement.
According to Bloomberg ETF analyst Eric Balchunas, approval of a Bitcoin spot ETF could potentially be a game-changer in unlocking vast reserves of capital for the cryptocurrency market.
His analysis estimates that $30 trillion worth of assets controlled by U.S. financial advisors could be funneled into Bitcoin investments if a spot ETF is green signaled by the U.S. SEC.
K33 Research has sparked strong online discussions among traders and enthusiasts.
Analysts research at the company suggests that the market is significantly
underestimating the transformative potential of U.S. Bitcoin (BTC) exchange-traded funds (ETFs) and Ethereum (ETH) futures-based ETFs.
Another key point is the new FASB accounting rules simplifying the process for corporations and institutions to hold Bitcoin.
Given this simplification, and when a bull market starts the obvious trend of corporations and institutions purchasing BTC is only likely to continue.
So far and as mentioned earlier the price action and technicals for BTC remain unchanged and weak.
Even data from on-chain analytics firm Santiment showed this week a steady increase in Bitcoin deposits on exchanges
The “supply on exchanges” refers to the percentage of the total circulating supply of BTC currently held in the wallets of all centralized exchanges.
This metric has increased by 3.1% in two weeks as traders look motivated to take small profits. Small traders booking profit at exactly the wrong time could also be a good thing given the mentality of trading.
Pockets of volatility have also started to pop up towards BTC, indicating that a massive price move is coming. In fact the largest spike in one-day volatility since January came this week.
Overall, rumors are rumors, but if the Bitcoin ETF rumors persist, then a bull train is coming that won't stop anytime soon, and probably not before at least $42,000.
