The approval of a Bitcoin exchange-traded fund (ETF) in the imminent future is likely to trigger a significant rise in the price of Bitcoin, according to an EY executive.
Speaking at the Crypto Valley Conference in Zurich earlier this week, EY FinTech Chief Clive Ansell said that the approval of the first Bitcoin ETF was “likely to trigger a buying rally in Bitcoin.” Prior to the approval of the ETF, Ansell said that it was “entirely possible” that the price of Bitcoin might slip slightly, as investors bet on the outcome of the ETF approval process.
However, once the ETF is approved, Ansell believes that there will be an influx of institutional money into the Bitcoin market, triggering a significant increase in the price of Bitcoin. Ansell also noted that increased institutional interest in the digital currency could mean more investors will “begin to recognize the long-term investment case for Bitcoin.”
It is worth noting that the United States Securities and Exchange Commission (SEC) is currently examining the possibility of approving the first Bitcoin ETF in the US. In addition, the SEC is currently reviewing a ETF proposal from a Canadian firm, the Purpose Bitcoin ETF, which has recently been approved by Canadian regulators. It remains to be seen if the SEC will approve any Bitcoin ETFs in the near future.