Spot Bitcoin ETF Greenlight Has Already Been ‘Partially Priced In,’ Coinbase Researcher Says

Bitcoin ETF has been in the spotlight recently a lot, and many voices in the crypto space have been saying that we can expect all BTC ETFs to be approved soon, all at once. Check out the latest reports below.

David Duong, head of institutional research at Coinbase, has conducted a new analysis that suggests the impact of a potential regulatory approval for a US-based spot Bitcoin (BTC) exchange-traded fund (ETF) has already been “partially priced in” for the top cryptocurrency.

The performance of Bitcoin and the altcoin market has been diverging, indicating that market participants are already anticipating the approval of one or more BTC ETFs.

However, Duong believes that Bitcoin may not experience as much of a surge as traders expect it to when a spot-based ETF is approved, as the highly anticipated event is already partially priced in.

“That makes it less clear how much more Bitcoin could outperform if a favorable U.S. Securities and Exchange Commission (SEC) decision occurs.”

Duong points out that if a Bitcoin (BTC) exchange-traded fund (ETF) is approved, it may take some time for significant inflows to occur.

He compares the scenario to a previous gold ETF approval stating that the SPDR Gold Shares ETF (GLD) was a pioneer in the US gold exchange-traded products market when it launched on November 18, 2004, almost 19 years ago.

Although GLD has been a widely successful financial product, with total assets of $51.4 billion today, according to Bloomberg, it only attracted $1.9 billion in net inflows (inflation-adjusted to today’s dollars) within the first 30 days of launch. It took GLD a year to grow that to $4.8 billion.

In late September, the U.S. Securities and Exchange Commission (SEC) delayed decisions on a number of spot BTC ETF applications, including BlackRock’s.

It is also important to mention the fact that the final deadline for the SEC to review one application, the ARK 21 Shares Bitcoin ETF, is on January 10th.