The approval of the BTC and ETH Spot ETFs in the United States will have a significant impact on cryptocurrencies, the prices we are seeing in recent weeks are proof of this.
Gabor Gubacs, VanEck's Head Strategy for the digital assets sector, believes that Spot ETFs can also have a positive impact on altcoins, in particular on the main ones such as Ethereum, Cardano, Solana etc...
His analysis is based on the experience of the Spdr Gold ETF (GLD), the first Spot ETF on gold, launched in 2004. The ETF channeled large capital into the commodity, leading to a substantial increase in the price of gold from 400 dollars to around 2000 today.
Gubacs believes that Bitcoin can follow the same path, starting from a base capitalization of $750 billion.
“The capitalization of Bitcoin today is less than 1/3 of that of gold in 2004, but in my opinion, after the approval of a Spot ETF, the price trajectory could follow that of gold, even faster” he states the analyst.
Altcoins could benefit from this, continues the analyst, especially thanks to the increase in liquidity, the interest generated by spot ETFs and obviously the innovative characteristics of the individual cryptocurrencies.
As with everything, the negative aspects of a Spot ETF must also be considered.
I could mention the absence of regulation in the sector which still does not give any certainty of prevention from fraud or situations similar to FTX to be clear, ETF commissions are not always so convenient, finally it must be considered that companies with millions or billions of capital, just imagine what could happen if, for example, BlackRock buys or sells an asset by moving millions of dollars... in both cases, a shock in the market is to be expected!
For better or for worse, it seems that the approval of Spot ETFs has become only a question of WHEN and no longer of IF, we will only discover everything else by experiencing it.
Yesterday, I wrote an article about Altseason that I suggest you to not miss : https://www.publish0x.com/blogging-crypto/altseason-is-coming-xrxggwz
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