Here are the coins that will benefit most from Bitcoin ETF approval

Last Updated: January 11, 2024 8:31 PM EST | 3 minutes of reading

Source: DALL·E

Some cryptocurrencies will likely benefit more than others following the timely approval of the Bitcoin ETF by the SEC in the United States.

Spot approval of Bitcoin ETF gives no-web3 Savvy retail and institutional investors have easy access to direct exposure to Bitcoin (BTC).

One-time approval of Bitcoin ETF should therefore unlock a wave of new demand for the cryptocurrency.

With spot Bitcoin ETFs After attracting approximately $2.2 billion in demand on their first day of trading, according to investment manager Timothy Peterson, we are already seeing signs of strong early demand.

And this latest demand shock to the BTC market following the approval of the Bitcoin ETF precedes an impending supply shock.

In April, the Bitcoin issuance rate to network validators will be reducedf, reduce structural selling pressure.

Macro is also likely to be a major tailwind for crypto this year.

THE The US Federal Reserve should start lowering interest rates.

The approval of the Bitcoin ETF, the Bitcoin halving, and a round of Fed rate cuts are a cocktail of bullish narratives that could easily be spun. BTC above $100,000.

But what other coins should benefit from the recent Bitcoin ETF approvals?

Here are the pieces that will benefit the most.

Coins That Will Benefit Most From One-Time Bitcoin ETF Approval

Ether (ETH)

Ether (ETH), the native cryptocurrency that powers the smart contract-enabled layer 1 Ethereum blockchain protocol, is expected to benefit greatly.

Indeed, major ETF providers in the United States like BlackRock has already filed an application to create an Ethereum spot ETF.

With Bitcoin spot ETFs having been approved, it will be difficult for the SEC not to approve similar products.

While the SEC has labeled some major cryptocurrencies like XRP (XRP), Solana (GROUND), Cardano (ADA) and Polygon (MATIC) as securities, which might be reason enough for them to block spot ETFs at the moment, the agency has not given Ether such a label.

ETH is already up 17% this week and trading at its highest levels since May 2022, near $2,600 on ETF bets.

Chart technicians argued that the door was open for a quick move towards the next major resistance level near $3,600.

XRP (XRP)

The SEC labeled XRP a security in 2020 when it sued XRP’s creator, Ripple Labs, for issuing it through an unregistered securities offering.

But Ripple Labs has gained momentum in this lengthy lawsuit.

Last summer, a judge ruled that XRP was not necessarily a security as the SEC claims.

The agency was also recently forced to drop charges against top Ripple Labs executives on the alleged “aiding and abetting” of the sale of unregistered securities.

If the lawsuit ends with the SEC losing in 2024, ETF providers could interpret this as confirmation that XRP is not a security.

They may soon file an application to create a spot XRP ETF.

So while XRP traders will continue to focus more on the ongoing lawsuit, ETF optimism could become an important narrative.

Litecoin (LTC)

Often called the digital money to Bitcoin’s digital gold, Litecoin could greatly benefit from the ETF’s optimism.

Indeed, cryptocurrency is widely considered not to be a security in the United States.

Litecoin is one of four recently launched traded cryptocurrencies. American crypto trading platform EDX Markets.

EDX Markets was created with compliance in mindonly allowing trading in cryptocurrencies, it is certain that the SEC will not consider them as securities.

Litecoin is much smaller than Bitcoin and is not currently on the radars of many institutions.

But as the bull market progresses and Litecoin’s market cap climbs into the tens of billions of dollars from its current $5.29 billion, ETF providers could step in at any time.

With spot Bitcoin ETFs having been approved, the SEC would have no good excuse to block a spot Litecoin ETF.

Altcoin to Consider – Token Bitcoin ETF ($BTCETF)

Ether, XRP and Litecoin each offer strong upside potential.

But a recently launched altcoin called Bitcoin ETF Token ($BTCETF) could do even better in 2024.

The altcoin is designed to provide traders with upside exposure when various milestones related to the launch of spot Bitcoin ETFs are reached via adjustments to its transaction tax and via a burn mechanism.

Proponents of BTCETF present it as an asymmetric opportunity. They believe SEC approval could easily result in a doubling or tripling Bitcoin prices in 2024.

Meanwhile, BTCETF theoretically has the possibility of 10x its current market capitalization of $12.45 million, according to crypto analyst ClayBro.

Discover the Bitcoin ETF token on DEXTools.

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