ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. Pros Still Projecting Big Bitcoin Rally on ETF Approval
Crypto Channel
Share

Pros Still Projecting Big Bitcoin Rally on ETF Approval

Tom LydonAug 17, 2023
2023-08-17

Approval of a spot bitcoin exchange traded fund in the U.S. is one of the most widely anticipated and delayed events in the roughly three-decade history of the ETF industry.

Those delays are popping up again. The Securities and Exchange Commission (SEC) recently put off decisions on some recent spot bitcoin ETF filings until next year. That’s not unusual – the commission has an established history of doing that. Nor does it mean those filings will be rejected. For now, however, there’s plenty of speculation and not much in the way of tangible results in terms of these ETFs coming to market in the U.S.

One thing that crypto bulls and market observers can agree on is that the price of bitcoin could surge in epic fashion if related spot ETFs are approved in the U.S. If that happens, established crypto-related ETFs such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO ) could generate noteworthy upside of their own.

Why SATO Is Relevant Here

On the spot bitcoin ETF approval front, SATO is relevant for multiple reasons. First, the bulk of the ETF’s 36 holdings are bitcoin miners – an asset class intimately correlated to the digital currency’s price action.

Second, SATO’s largest holding is the Grayscale Bitcoin Trust (GBTC). That fund would likely rocket higher if a spot bitcoin ETF comes to life. In fact, Grayscale is attempting to convert GBTC to the ETF wrapper. GBTC accounts for 17.66% of SATO’s roster. The point is the approval of a spot bitcoin ETF has implications, most of them positive, for assets like SATO. Consider the following.

In a recent interview with CNBC, Fundstrat’s Tom Lee said a US-listed spot bitcoin ETF could lead to favorable supply/demand dynamics for the digital currency. That would potentially take its price to $150,000 and perhaps as high as $180,000. Those prices are more than five and six times where bitcoin resides at this writing.

Even if the SEC doesn’t approve a spot bitcoin ETF, there are avenues for bitcoin to deliver 2024 upside. Though not likely to the tune of reaching six-figure territory. Lee mentions the 2024 halving and the possibility of a more accommodative monetary policy from the Fed as potential catalysts for the cryptocurrency next year.

“Crypto is dependent on monetary policy. So, if inflation is cooling, then we can start to bet on forward financial conditions easing and central bank easing sooner," Lee said in the CNBC interview. “That’s bullish for crypto or alternative assets.”

For more news, information, and analysis, visit the Crypto Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X