Editor's Pick

Here Are the Coins that Will Benefit the Most from the Bitcoin ETF Approval

Source: DALL·E

Some cryptocurrencies are likely to benefit more than others following the SEC’s spot Bitcoin ETF approval in the USA.

Spot Bitcoin ETF approval give non-web3 savvy retail and institutional investors easy access to gain direct exposure to Bitcoin (BTC).

Spot Bitcoin ETF approval is thus expected to unlock a wave of new demand for the cryptocurrency.

With spot Bitcoin ETFs having attracted roughly $2.2 billion in demand on their first trading day, as per investment manager Timothy Peterson, we are already seeing signs of strong early demand.

1/ Today’s #Bitcoin ETF stats by the numbers:
Estimated $2.2 billion new inflows across 10 funds (excludes $GBTC) pic.twitter.com/xM0cc2tVsc

— Timothy Peterson, CFA CAIA (@nsquaredcrypto) January 11, 2024

And this latest demand shock to the BTC market following Bitcoin ETF approval comes ahead of a looming supply shock.

In April, the Bitcoin issuance rate to network validators will half, reducing structural sell pressure.

Macro is also likely to be a major tailwind for crypto this year.

The US Federal Reserve is expected to start lowering interest rates.

Bitcoin ETF approval, the Bitcoin halving and a Fed rate-cutting cycle is a cocktail of bullish narratives that could easily launch BTC above $100,000.

But what other coins are set to benefit from the recent Bitcoin ETF approvals?

Here are the coins that will benefit the most.

Coins That Will Benefit the Most from Spot Bitcoin ETF Approval

Ether (ETH)

Ether (ETH), the native cryptocurrency that powers the smart-contract-enabled layer-1 Ethereum blockchain protocol, is set to benefit greatly.

That’s because major ETF providers in the US like BlackRock have already filed to set up spot Ethereum ETFs.

With spot Bitcoin ETFs having gained approval, it will be difficult for the SEC not to approve similar products.

While the SEC has labeled some major cryptocurrencies like XRP (XRP), Solana (SOL), Cardano (ADA) and Polygon (MATIC) as securities, which could be reason enough for them to block spot ETFs for now, the agency hasn’t given Ether such a label.

ETH is already up 17% this week and trading at its highest levels since May 2022 near $2,600 on ETF bets.

Chart technicians have argued that the door is open for a swift move toward the next major resistance level near $3,600.

XRP (XRP)

The SEC labelled XRP as a security back in 2020 when it sued XRP’s creator Ripple Labs for issuing it via an unregistered securities offering.

But Ripple Labs has winning momentum in the lengthy lawsuit.

Last summer, a judge ruled that XRP wasn’t necessarily a security as the SEC claims.

The agency was also recently forced to drop charges against key Ripple Labs executives over the alleged “aiding and abetting” of unregistered securities sales.

If the lawsuit ends with SEC defeat in 2024, ETF providers may interpret this as confirmation XRP isn’t a security.

They may soon file to set up spot XRP ETFs.

So while XRP traders will continue to focus more on the unfolding lawsuit, ETF optimism could become an important narrative.

Litecoin (LTC)

Often referred to as the digital silver to Bitcoin’s digital gold, Litecoin could benefit greatly from ETF optimism.

That’s because the cryptocurrency is widely viewed as not a security in the US.

Litecoin is one of only four cryptocurrencies traded on recently launched US crypto trading platform EDX Markets.

EDX Markets was set up with compliance in mind, only allowing trade in cryptocurrencies it is sure the SEC won’t deem as securities.

Litecoin is a lot smaller than Bitcoin and not on many institutions’ radars right now.

But as the bull market progresses and Litecoin’s market cap moves up into the $10s of billions from its current $5.29 billion, ETF providers could jump in at any moment.

With spot Bitcoin ETFs having been approved, the SEC would have no good excuse to block a spot Litecoin ETF.

Altcoin to Consider – Bitcoin ETF Token ($BTCETF)

Ether, XRP and Litecoin each offer strong upside potential.

But a newly launched altcoin called Bitcoin ETF Token ($BTCETF) could perform even better in 2024.

The altcoin is designed to offer traders upside exposure to when various milestones related to the launch of spot Bitcoin ETFs are hit via tweaks to its transaction tax and via a burn mechanism.

BTCETF backers tout it as an asymmetric opportunity. They believe SEC approval could easily spur a doubling or tripling of Bitcoin prices in 2024.

Meanwhile, BTCETF theoretically has room to surge 10x from its current $12.45 million market cap, according to crypto analyst ClayBro.

Check out Bitcoin ETF Token on DEXTools.

The post Here Are the Coins that Will Benefit the Most from the Bitcoin ETF Approval appeared first on Cryptonews.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *