As we all probably know by now, the approval of the Bitcoin Spot Exchange Traded Fund (ETF) by the USA's Security and Exchange Commission (SEC) is the biggest thing on the horizon. Right now the SEC hasn't given it's approval, it is still under review, but the entire Crypto world is awaiting this approval with high hopes and excitement.

So many developments in Crypto are usually awaited with varying degrees of hope and excitement. Crypto enthusiasts usually expect higher prices and increase in the perceived status of Cryptocurrencies/Blockchain technology when new developments are underway. But some developments don't always live up to the hype.

Sometimes we wish we can look into the future and see if a new development or announcement that is being hyped would cause the expected boost in price and adoption that we're hoping for. And now, even though this wish sounds more like a childlike fantasy that can't be actualized, on the issue of the Bitcoin Spot ETF approval we have been able to look into the future and have had a sneak peek of what this approval would do to Cryptocurrencies!

For those who don't know what the whole talk about Bitcoin Spot ETF is about, I wrote this post explaining it as simply as possible. The shortest version is that it is providing for Bitcoin to have the option of being traded on the Stock Market.

This would enable all the investors in stock to be able to simply trade Bitcoin like one of those stocks they trade. A huge opportunity for the trillions in the Stock Market to be able to enter the cryptocurrency market!

This has not yet been approved by the USA's SEC, but the potential approval is expected to skyrocket the price of Bitcoin and other cryptocurrencies.

And while the excitement and hopes for this potential approval has been building, we got to have a little taste of what it would be like if this approval comes through at last. We got this taste just a few days back, on the 16th of October, 2023.

The Test 4 Days Ago

By 13:24 UTC on the 16th, Cointelegraph, one of the most trusted Crypto news sources posted, by error, in a now deleted tweet (X) that the application for BlackRock's Bitcoin Spot ETF was approved.

After about 1 hour, Cointelegraph deleted the tweet, and apologized for the misinformation.

And right there, ladies and gentlemen, was our sneak peek into how the price of Bitcoin would react if the Spot ETF is approved. With this announcement by Cointelegraph, even though it was a misinformation, a number of market makers thought the news to be true.

And even though it lasted for only about an hour, it moved the price of Bitcoin from $27,000+ to $29,000+! In such a short while! Notwithstanding that it was only Cointelegraph and a few other news sites that posted it. Notwithstanding that it lasted for only about an hour! Notwithstanding that there's no way enough people learnt about it!

Notwithstanding that the Asian Market was still asleep by that time, as it was bed time in Asia. Notwithstanding all of these factors, the priced moved that quickly in such a short while.

Almost immediately, the price went back down to around $27,000, when people found out it was fake news. But this just shows you a taste of what the approval of the Spot ETF would do to prices!

Further Effects

At the time of writing, Bitcoin is $29,547, this is without a doubt, the effect of that misinformation from Cointelegraph. Even though everyone found out it was a misinformation, it made people see what such an announcement can do.

It also made people learn more about the Spot ETF, and after learning about it they realized it would be a big deal for Bitcoin. So with the hope that the Spot ETF might be approved and the real announcement would come later they've put in some more money in Bitcoin and that's what's causing the recent increase in prices.

Conclusion

It's so great to have tasted what the announcement of this approval can do. Now we know how much Crypto needs this approval. Now we know that the hype is worth it, and that future holds a lot of treasures for us if this ETF is approved.

We should keep our eyes on the SEC and this entire process, and do whatever we can to see this through. This is one of the top few biggest things that would ever happen to Crypto!

[Cover Image from Pixabay]