[Bitcoin Now] Rising Trend on Prospect of Spot ETF Launch Within This Year

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are on the rise following news that a Bitcoin spot exchange-traded fund (ETF) is set to be launched.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:04 AM on the 19th, the price of Bitcoin stood at $40,860 (approximately 50.44 million KRW), up 2.85% compared to the previous day.

Bitcoin prices showed an upward trend amid expectations that a spot ETF will be launched. The launch of a spot ETF is anticipated to increase investment accessibility and attract large-scale capital inflows. However, the SEC has so far only approved futures ETFs, and some analysts believe it will take a long time before spot ETF approval is granted.

The U.S. financial media CNBC reported, "Cryptocurrency experts expect that a Bitcoin ETF could be launched as early as this year," adding, "This optimism stems from the U.S. Securities and Exchange Commission (SEC) approving Teucrium’s Bitcoin futures ETF application earlier this month." CNBC explained that Teucrium’s Bitcoin futures ETF was filed under the Securities Act of 1933, unlike other Bitcoin futures ETFs which are based on the Investment Company Act of 1940. Michael Sonnenshein, CEO of cryptocurrency asset management firm Grayscale, stated, "The SEC views the Investment Company Act of 1940 as having more protective provisions than the Securities Act of 1933, but these protections have never addressed the SEC’s concerns about potential fraud or manipulation in Bitcoin."

Investor sentiment is also showing signs of recovery. The Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded a 'neutral' level at 47.88 on the same day. This marks a slight increase from 47.82 (neutral) the previous day and 44.63 (neutral) on the 12th of this month. Dunamu’s Digital Asset Fear & Greed Index is divided into five stages: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. A movement toward greed indicates increased buying interest among market participants, whereas a shift toward fear reflects growing concerns about asset declines, leading to market exits and subsequent price drops.