When i think about ETF, i think more investment will come. It is good for bitcoin and also alts. But how if it will become like late 2017? when majority crypto users are traders and investors who expect moon and lambo. And cryptocurrency become speculative things rather than digital currency.
Now we see the result. Crypto market hard to recover because no one want to buy, we only hold and waiting whales or random person to start a bull run or "institutional money" to come in.
Same person who buy and sell.
I think we might see different result if cryptocurrency have wide adoption/real usage as digital currency, because that will bring continuous real demand. and market recovery wouldn't be too hard
If the ETF is accepted it will reinforce confidence in the market and investors who have left the market since early 2018 will return to the market. Now the rest of the market is the holders and they just want to buy everything cheap and wait for their altcoin to go to the moon. That will never happen if no one is buying and selling to push up prices.