According to CoinDesk, investors should consider the potential impact on the bitcoin (BTC) price following the approval of spot BTC exchange-traded funds (ETFs), according to a research report by broker Cantor Fitzgerald. The approval is seen as a landmark milestone in bitcoin's history, with significant implications for long-term price appreciation. Analysts Josh Siegler and Will Carlson believe the approval acts as a major demand shock to the market, occurring a few months before bitcoin's recurring supply shock: the halving event expected in April 2024. During a bitcoin halving, miners' rewards are reduced by 50%.
The authors suggest that bitcoin miners represent an attractive investment opportunity for equity investors seeking a way to access the long-term bitcoin adoption trade, with levered upside and theoretical hedged downside. They also believe that the spot ETFs could have a substantial positive impact on bitcoin miner valuations. Investment bank H.C. Wainwright & Co. views the spot ETF approval as a historic moment for bitcoin and miners, as ETFs provide both retail and institutional investors with a familiar and regulated investment vehicle, significantly expanding access to the world's largest cryptocurrency. Analyst Mike Colonnese expects significant incremental demand for BTC via these newly approved spot ETFs.
