What if Bitcoin ETF is not Approved
Whereas optimism is high as regards the approval of Bitcoin ETF which could be a milestone for investor to come in. Bitcoin topped $42,000 in December 2023 and the yearly gain compared from 2021 to date is 160%. One major factor at play was the hope to list Bitcoin ETF which is a very progressive discussion between the Asset managers and the Securities and exchange commissions.
When we plan we plan for possible eventuality and please do not consider this negative bias. Wisdom Tree, BlackRock etc. has meet the criterial as said and are waiting for a positive signal. Should we bank on it. The question is still pondering in my mind if it doesn't go as suggested or the approval is denied what then happens?
I can only see a sudden fall if Bitcoin ETF is not approved and you may as well add your input on this. However, from now till 2026 will be promising for BTC as there would be favorable outcome. It is a game of patience.
It could help to approach this question from a different perspective because now that this ETF story has been out for years, it seems to affect investment decisions. But if this had not been circulating for so long, I think Bitcoin would still be where it is now. ETFs are a good vehicle to bring in both institutional and retail investors alike. Yet I am sure that the influx of new capital into the Bitcoin network would have taken place anyway. It is not like there are not enough options for people to participate. I know that the market deems this some sort of verification from the highest political or authority level if the ETFs get approved, but Bitcoin has gone through some serious crises in the past and always came back stronger than ever before. This whole ETF story is a bonus and I understand why it would have an impact on the price if it gets denied (because of herd behavior and people who want to take advantage of insider knowledge and leveraged position), but everyone who studies the whole Bitcoin story knows that this is not as big of a milestone as it is currently discussed.