Bitcoin Spot ETFs: Approval expected on a cash-created basis - How does this affect the price potential?

Bitcoin Spot ETFs: Approval expected on a cash-created basis - How does this affect the price potential?

According to a report by www.btc-echo.de, analysts expect that only those Bitcoin Spot ETF applications that submit their application on a “cash-created” basis will be approved by the SEC. The SEC is concerned that the “in kind” model could be exploited for money laundering, so ETF shares should only be issued for cash. The expectations regarding the price potential of the ETFs therefore remain to be seen.

Yesterday's daily Bitcoin price candle closed above the necklines and about $200 away from the $44,000 mark. The retest to the old highs has already taken place. The chances are therefore good that the Bitcoin price will soon break its annual high. The bullish structure is still in tact on both the daily and 4-hour charts. If Bitcoin breaks through $44,000, an impulsive rise can be expected.

Bitcoin price: Important supports and resistances

Support levels: $43,390 / $43,000
Resistance levels: $44,000 / $44,270

Bastian Keller, an independent player in the Forex market since 2015 and a full-time trader in the crypto market since 2018, actively shares his expertise on various social media platforms, especially on his YouTube channel “Bitbull Trading”, with more than 36,500 subscribers. In addition to his YouTube channel, he has already built a community with more than 4,000 active members to offer both beginners and experienced traders the opportunity to improve their skills to a professional level, with a focus on long-term profitable trading in the market, regardless of their location.

Considering the possible approval of Bitcoin ETFs on a cash-created basis by the SEC, this could lead to increased demand for Bitcoin as institutional investors may enter the market to participate in this financial instrument. This could further boost the Bitcoin price and lead to a rise above the mentioned resistance levels of $44,000 and $44,270.

A possible breakout of Bitcoin price above these resistance levels could trigger an impulsive increase and positively influence the overall sentiment in the cryptocurrency market. However, it remains to be seen how regulatory developments and SEC decisions will actually impact the market.