Amid the anticipation of a potential surge in demand for Bitcoin (BTC) following the approval of a spot exchange-traded fund (ETF) by the US SEC, an anonymous buyer has made a significant investment in the digital asset.
Between November 10 and the present, an unidentified buyer has purchased a total of 11,268 Bitcoin (BTC) valued at $424 million, making them the 74th largest holder of Bitcoin, according to Bitinfocharts data.
The most recent purchase, which occurred on Wednesday, involved the acquisition of 875 BTC. At the current price range of $36,000 to $38,000, the wallet owner still has at least $9.8 million invested, with potential for future profits.
Identity and Speculations
The identity of the buyer has sparked various speculations, with many linking the purchase to a major entity awaiting regulatory approval for a spot bitcoin ETF from the US SEC. This development raises questions about the fairness and permissibility of such a move.
If a spot ETF is approved, asset managers are expected to hold and custody a significant amount of BTC to meet the expected surge in demand from both institutional and retail investors. Analysts widely anticipate a substantial increase in demand for BTC upon approval of a spot ETF, potentially leading to a significant price surge.
VanEck advisor Gabor Gurbacs emphasized the potential impact, stating that even with minimal demand of $20 billion to $30 billion, approval for a spot ETF could generate trillions in value.
The decision of the SEC in the coming weeks regarding the approval of a spot bitcoin ETF is highly anticipated, as it holds the potential to kickstart a bullish trend in the crypto market.
What is a spot exchange-traded fund (ETF)?
A spot exchange-traded fund (ETF) is a type of ETF that holds underlying assets, such as stocks or commodities, in the form of physical shares or assets.
How could the approval of a spot ETF impact Bitcoin (BTC) demand?
Approval of a spot ETF is expected to significantly increase the demand for Bitcoin (BTC) as it would open up the crypto asset to a broader range of institutional and retail investors.
What is the role of the US SEC in the approval of a spot ETF?
The US Securities and Exchange Commission (SEC) plays a key role in regulatory approval processes for financial products, including ETFs. Its decision regarding the approval of a spot bitcoin ETF is highly influential in the cryptocurrency market.
Who is VanEck advisor Gabor Gurbacs?
Gabor Gurbacs is an asset management industry professional who serves as an advisor at VanEck, a global investment management firm.