09/06/2023
The market appears to be undervaluing the potential of U.S. spot bitcoin ETFs, according to crypto research firm K33 Research.
"It's a buyer's market — prices 'should' have gone up," K33 Senior Analyst Vetle Lunde and Vice President Anders Helseth wrote in a new report.
A spot bitcoin ETF approval should attract "enormous" inflows, creating substantial buying pressure on bitcoin, the analysts said. On the flip side, a rejection would merely maintain the status quo.
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"The market is fundamentally underappreciating great news," they noted.
Grayscale's recent legal win in its ongoing battle against the Securities and Exchange Commission led to a brief 6% market surge before fully retracing as the agency delayed seven spot bitcoin ETF proposals from BlackRock, Fidelity, VanEck, WisdomTree, Invesco, Bitwise and Valkyrie until mid-October.
Meanwhile, the Nasdaq 100, often seen as a barometer of the market's risk appetite, has climbed by 2%. Given the heightened likelihood of spot ETF approvals, with Bloomberg analysts predicting a 75% chance of approval this year, the market's valuation seems mispriced, Lunde and Helseth added.
