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Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

At present, the U.S. Securities and Exchange Commission has compromised with the market. On Wednesday, January 10, 2024, the U.S. time, the SEC approved the Bitcoin spot ETF for the first time in history, and authorized 11 ETFs to start trading on Thursday. This means that the turnover and twists and turns of ten years have come to an end. Even though SEC Chairman Gary Gensler said that this approval does not mean that the regulator has recognized Bitcoin, it cannot be denied that this approval has made the Bitcoin market start to revel. At the same time, there has been a discussion on whether Bitcoin spot ETF will rise after it passes. This is a more complicated issue. There are currently two main views on rising and falling. The following currency circle editor will explain in detail.

 Will Bitcoin spot ETF rise after Bitcoin passes?

It is not easy to predict whether Bitcoin spot ETF will rise after Bitcoin passes. There are currently two main voices. One is that the currency circle speculates that it will fall if it passes, and the other is that it will land, indicating that valuable bits will rise.

The launch of Bitcoin spot ETF will significantly increase Bitcoin's trading volume, liquidity and stability because it can attract investment groups including traditional investors and institutional investors. According to Reuters, it is expected to attract up to $3 billion in investment in the first few days of trading. Increased participation not only expands Bitcoin's investor base, but also has the potential to make Bitcoin prices more stable.

In the long run, as more funds flow into the Bitcoin market, this may have a positive impact on Bitcoin's price, although there may be some volatility in the short term. In addition, the success of Bitcoin spot ETFs may also promote the development of other cryptocurrency products, such as ETFs or related derivatives involving other cryptocurrencies, further expanding the product depth of the entire cryptocurrency market.

There are other voices in the market. Arthur Hayes, founder of BitMEX, believes that the passage of ETFs may eventually lead to the disappearance of Bitcoin. The reason is that if everyone buys Bitcoin ETFs instead of spot, there will be no Bitcoin transactions between two entities, and miners will not be able to pay the necessary energy costs, causing the network to collapse.

He also mentioned that if only large asset management companies hold but do not use Bitcoin, Bitcoin will no longer circulate on the blockchain and have no practical use, which will lead to the disappearance of Bitcoin. He believes that in order to protect Bitcoin from centralized control, investors should buy and store Bitcoin directly instead of investing in derivatives such as Bitcoin ETFs.

 What are the advantages of Bitcoin spot ETFs?

Bitcoin spot ETFs are mainly about cost and convenience. If you buy Bitcoin directly, small investors on many trading platforms sometimes have to pay fees and spreads that exceed 1% of their purchase amount. Since many platforms, including Robinhood
Markets and Fidelity, offer zero-commission trading, it is much cheaper to buy Bitcoin ETFs.

Compared with opening an account specifically for buying Bitcoin on trading platforms such as ETFs and ETFs, investing in ETFs is more convenient, and investors can manage Bitcoin and other assets in the same account. Investors don't have to worry about losing or stealing their account passwords, reducing the potential risk of asset loss.

Bitcoin ETFs can also be held in investors' retirement accounts, which can avoid capital gains taxes brought by directly holding Bitcoin. But this also means that even if the price of Bitcoin falls, the taxes generated in retirement accounts will not decrease accordingly.

All of the above is the answer to the question of whether Bitcoin will rise after the Bitcoin spot ETF is passed. The passage of the Bitcoin spot ETF has undoubtedly brought Bitcoin and cryptocurrencies to a new historical starting point. Investors can also perceive the current market sentiment through data such as the Bitcoin spot ETF market size estimate and the Bitcoin price performance estimate. In addition, the second-order effect of the approval of the Bitcoin spot ETF may have a greater impact on global Bitcoin demand. Other countries are expected to follow the footsteps of the United States and approve and launch similar Bitcoin spot ETF products to meet the needs of a wider range of investors. In the long run, as Bitcoin is monetized, its market share in different asset classes may increase, thereby expanding the market size of Bitcoin.