Bitcoin (BTC) does not need the United States to authorise a spot exchange-traded fund (ETF), according to Alistair Milne, chief investment officer of Altana digital currency fund.
Bitcoin & Exchange-traded Fund
Milne mentioned on X on August 31 that a U.S. spot Bitcoin ETF was a distraction. While an ETF approval would be beneficial to the sector, he believes the flagship digital asset would still perform well without it.
Milne said:
“[A BTC ETF is] nice to have, but we didn’t need one to get us to $69,000 and we don’t need one to get to $100,000.”
Price action influenced by the BTC ETF
Bitcoin’s price has recently seen substantial volatility, breaking free from a period of relatively stable movement that lasted many weeks.
These price movements can be ascribed mostly to events involving spot Bitcoin ETF applications before the United States Securities and Exchange Commission (SEC).
When BlackRock and many traditional financial institutions submitted an ETF application in June, the flagship digital asset suffered its biggest dramatic price increase in over a year, surpassing $30,000 for the first time.
This gain has been ascribed mostly to the increased likelihood of a spot Bitcoin ETF approval, with some market experts encouraging the regulator to accept all applications.
11% Drop
As a result, BTC’s price moves have closely tracked changes in spot ETFs. Following an 11% drop caused by rumours of Tesla selling its Bitcoin holdings, the digital asset recovered when the United States Court of Appeals sided with Grayscale in its legal battle with the SEC.
However, this upward momentum was short-lived, as it quickly retraced to the $25,000 level due to the SEC’s decision to postpone its judgement on a slew of pending BTC.
ETF applications, citing the need to thoroughly analyse the proposed rule changes.
Because of concerns about market manipulation, among other things, the Commission has yet to approve a spot BTC ETF in the United States.
To read our blog on “Within 3 months, Bitcoin miners’ revenue dropped by half,” click here
