The demand for BTC is expected to skyrocket once a spot exchange-traded fund ETF is approved by the US SEC.
A yet-to-be-identified buyer has acquired 11,268 Bitcoin (BTC) between November 10 and now. The purchase, which is worth a total of $424 million, has also made the buyer the 74th largest holder of Bitcoin, per Bitinfocharts data.
The latest of the buys, which took place on Wednesday, saw the wallet adding 875 BTC. At the current price range of between $36,000 to $38,000, this means that the wallet owner still has at least $9.8 million in investment, that is yet to yield any profits.
Who Is Buying BTC?
Since the wallet on a BTC buying spree has been exposed, the identity of the owner has raised different speculations. However, a majority believe that it may be linked to one of the major applicants currently awaiting the regulatory approval of the United States Securities and Exchange Commission (SEC). That is as it concerns launching a spot bitcoin exchange-traded fund (ETF).
However, there is also the matter of whether or not that kind of move is “fair play” and can be allowed.
Whichever might be the case, asset managers will be required to hold and custody a large quantity of BTC once a spot ETF is approved for them. That is the only way to cope with the undeniable demand (both institutional and retail) that is expected to follow.
Meanwhile, it is a known fact that crypto analysts often differ in many of their various views and opinions. However, it is also worth noting that there is one thing a lot of them appear to agree on. That is the fact that demand for BTC will skyrocket once a spot ETF is approved. And usually, once demand goes up, the price is expected to do the same, almost instantaneously.
As VanEck advisor Gabor Gurbacs said on Wednesday, approval for a spot ETF would create “trillions in value” even with just minimal demand of around $20 billion to $30 billion.
With quite an anticipation for what might be the beginning of a long bull run, the hopes of the entire crypto market rest on the decision of the SEC over the coming weeks.