Bloomberg Analyst Projects High Approval Odds for Bitcoin ETFs

Eric Balchunas, a Senior ETF Analyst at Bloomberg, projects the probability of approval for spot Bitcoin ETFs to reach 90% or higher, influenced by the SEC’s recent positive engagement.

Bloomberg analysts Eric Balchunas and James Seyffart have increased their ETF approval odds due to positive engagement from the SEC. The estimated probability exceeds 90%, a result of amended filings by major asset managers. Leading firms like Grayscale and Franklin Templeton are involved in these applications, aiming to introduce a diverse range of crypto ETFs. According to sources, asset managers are filing applications for cryptos such as Solana and XRP.

The projected approval of these ETFs is set to significantly impact the market by attracting increased institutional capital. Expert Sal Gilbertie of Teucrium anticipates up to $8 billion in inflows for XRP ETFs alone.

“We forecast $8 billion in inflows for XRP ETFs if approvals go ahead – a move that will shift market liquidity and institutional sentiment.” – Sal Gilbertie, CEO, Teucrium.

This potential influx showcases the growing demand for regulated crypto investment products.

Financial markets are keenly watching this development, expecting increased liquidity and heightened institutional involvement in cryptocurrencies. As history indicates, ETF approvals can result in substantial price movements and interest across the sector. Analysts believe that such regulatory advances may catalyze broader ETF launches for various cryptos. Historical data suggests that cryptocurrencies like BTC and ETH saw notable institutional inflows following previous ETF launches, a trend likely to recur with new approvals.

Overall, these events underscore a significant shift towards integrating traditional finance with digital asset markets, promising substantial liquidity and investment shifts.