First Bitcoin Spot ETF Approval Imminent... "Further Rise Uncertain"

On the 10th, amid news that FTX, the world's second-largest virtual asset exchange, was experiencing a liquidity crisis, a bank run occurred, followed by Binance's withdrawal from the acquisition, causing Bitcoin to plummet 12% and virtual assets to fall across the board. The price board at the Bithumb Customer Support Center in Seocho-gu, Seoul, displayed the prices of major cryptocurrencies including Bitcoin. Photo by Kang Jin-hyung aymsdream@

U.S. regulators are reportedly set to soon approve the first Bitcoin spot exchange-traded fund (ETF). This could be a positive development for cryptocurrency investors, but some forecasts suggest that further price increases may be limited given that Bitcoin's price has already more than doubled this year.

According to Bloomberg and other foreign media on the 26th (local time), the U.S. Securities and Exchange Commission (SEC) is widely expected to approve the ETF application before June 10. With reports that the SEC has discussed technical details with asset management firms, some view the approval of the Bitcoin spot ETF as imminent.

More than ten asset management firms, including BlackRock, are awaiting the review announcement for the Bitcoin spot ETF. It is widely believed that multiple applications will be approved simultaneously.

This year, Bitcoin's price surged 150% on expectations of the spot ETF listing. Additionally, the anticipation that the U.S. Federal Reserve (FED) will cut interest rates next year has been credited with fueling the bullish market. On the 5th, Bitcoin surpassed $44,000 for the first time since April last year and has since been trading sideways between $41,000 and $44,000. Bloomberg reported, "This year's Bitcoin rally has outperformed stocks and gold."

Investors expect that if the Bitcoin spot ETF is approved, Bitcoin's price could rise further. However, there is also pessimism that the approval could lead to a price decline. The long-standing market adage "buy the rumor, sell the news" cannot be ignored.

Brian Armour of Morningstar's North America division told CNBC, "The approval of a Bitcoin spot ETF would be the best product for investors," but also noted, "If profit-taking occurs, Bitcoin's price could fall after the ETF approval."

Therefore, experts recommend limiting cryptocurrency investments to about 1-5% of total asset allocation even if the Bitcoin spot ETF is approved. Armour emphasized, "Bitcoin remains an extremely volatile and speculative asset."