If the U.S. Securities and Exchange Commission (SEC) approves a spot Bitcoin ETF, it could lead to a radical shift in the supply and demand dynamics of the cryptocurrency market

According to a recent report by CoinDesk, if the SEC approves a spot Bitcoin ETF, it could lead to a significant increase in institutional investment, which could create a consistent buy pressure and enhance market liquidity and dynamics

However, opinions on what will happen in the crypto market if approval is granted are mixed. Some analysts predict that the initial impact of U.S. Bitcoin ETFs will be overestimated, and initial flows will equal only “a few hundred million of (mostly recycled) money”

Others say approval will require ETF issuers to purchase tens of billions of dollars of Bitcoin to satisfy institutional demand, leading to a radical shift in the supply and demand dynamics