Bitcoin ETFs Approved by SEC, Triggering Price Volatility and Predictions of Future Gains

Analysts anticipate significant fund inflows and price increases, but critics warn of potential risks associated with the new investment products.

The U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs this week, marking a significant milestone in the acceptance of cryptocurrencies as legitimate investment commodities.
Bitcoin's price initially soared to almost $50,000 following the approval, but then dropped to around $43,000, with some attributing the decline to short-term traders taking profits after the ETF approvals.
Analysts predict that the approval of Bitcoin ETFs could lead to significant inflows of funds into the cryptocurrency, potentially driving its price higher in the coming months and years.
Bitcoin's next 'halving' event, which will reduce the rewards for Bitcoin mining, is set to occur in April 2024 and is expected to further boost the cryptocurrency's price by reducing available supply.
Despite the landmark approval, some critics, including SEC chair Gary Gensler and investment manager Vanguard, have expressed concerns about the potential risks associated with Bitcoin ETFs.