Crypto research firm K33 Research has published a report stating that the potential impact of Bitcoin ETFs on the cryptocurrency Market is being significantly underestimated. Analysts at K33 Research argue that the approval of a spot Bitcoin ETF could provide a large amount of capital inflow to the crypto market and create significant buying pressure on Bitcoin. They believe that the market seems to be undervaluing the positive potential of these developments.
The report highlights Grayscale’s recent legal victory against the Securities and Exchange Commission (SEC), which initially triggered a 6% market rally. However, the SEC then made a move, and leading firms such as BlackRock, Fidelity, VanEck, WisdomTree, Invesco, Bitwise, and Valkyrie withdrew their spot Bitcoin ETF offerings. These ETF launches were delayed until mid-October. The Nasdaq, considered an indicator of market risk appetite, experienced a 2% increase in response to these events.
Senior Analyst Vetle Lunde and Vice President Anders Helseth from K33 Research believe that spot Bitcoin ETF applications are likely to be approved, and therefore, the market should adopt an upward stance. Bloomberg analysts estimate a 75% chance of approval this year. However, despite this positive outlook, the current market prices do not adequately reflect this sentiment.
The report highlights that market sentiment in the crypto derivatives sector has been negative since mid-August, characterized by consistently low funding rates, CME base figures, and next month premiums. However, the analysts point out that the crypto market is highly dynamic, and sensitivity can change rapidly.
K33 Research also analyzes the volatility of Bitcoin and states that it is decreasing compared to traditional assets such as the S&P 500 and gold. However, the analysts predict an “explosion” in price volatility in the near future and anticipate a more turbulent market ahead.
In summary, K33 Research believes that the cryptocurrency market is currently underestimating the positive impact of potential U.S. spot Bitcoin ETF approvals. They foresee a change in sentiment and an increase in market volatility in the near future..
#Research #firm #announced #Aspect #Bitcoin #ETFs
The report highlights Grayscale’s recent legal victory against the Securities and Exchange Commission (SEC), which initially triggered a 6% market rally. However, the SEC then made a move, and leading firms such as BlackRock, Fidelity, VanEck, WisdomTree, Invesco, Bitwise, and Valkyrie withdrew their spot Bitcoin ETF offerings. These ETF launches were delayed until mid-October. The Nasdaq, considered an indicator of market risk appetite, experienced a 2% increase in response to these events.
Senior Analyst Vetle Lunde and Vice President Anders Helseth from K33 Research believe that spot Bitcoin ETF applications are likely to be approved, and therefore, the market should adopt an upward stance. Bloomberg analysts estimate a 75% chance of approval this year. However, despite this positive outlook, the current market prices do not adequately reflect this sentiment.
The report highlights that market sentiment in the crypto derivatives sector has been negative since mid-August, characterized by consistently low funding rates, CME base figures, and next month premiums. However, the analysts point out that the crypto market is highly dynamic, and sensitivity can change rapidly.
K33 Research also analyzes the volatility of Bitcoin and states that it is decreasing compared to traditional assets such as the S&P 500 and gold. However, the analysts predict an “explosion” in price volatility in the near future and anticipate a more turbulent market ahead.
In summary, K33 Research believes that the cryptocurrency market is currently underestimating the positive impact of potential U.S. spot Bitcoin ETF approvals. They foresee a change in sentiment and an increase in market volatility in the near future..
#Research #firm #announced #Aspect #Bitcoin #ETFs
