Why is a U.S.-Based Spot BTC ETF Such a Big Deal? Aren't We Missing Something?

I've noticed that the crypto community is buzzing with anticipation for the U.S. to approve a spot BTC ETF. The excitement seems a little puzzling to me given that spot BTC ETFs are already a reality in Canada and Amsterdam, and yet, these haven't led to any dramatic increases in the BTC price.

From my research on this subreddit, the excitement mainly stems from the following reasons:

1. For U.S. citizens, investing in ETFs from other countries is complicated due to tax and other reasons and the need for a dealer who can handle international trades.
2. The U.S. is the largest market for financial instruments.
3. If the U.S. approves it, more countries are likely to follow suit.

However, I have some reservations about these arguments:

Regarding Point 1: While it's true that investing in international ETFs is a bit of a hassle for U.S. citizens, Bitcoin is a global asset. The inconvenience is primarily for Americans, but for investors in other countries, it doesn't make a big difference whether they invest in a U.S. ETF or one from another country. The Asian market, for instance, has shown tremendous interest in BTC, so why would a U.S.-only spot BTC ETF have a greater impact than the existing ones in Canada and Amsterdam? Asian countries still can invest in Canada and Amsterdam markets with a similar hassle to investment in Canada and Amsterdam.

Regarding Point 2: I agree that the U.S. is a significant market, but this argument kind of dovetails with my first point. BTC is a global asset, and there are plenty of people outside the U.S. who can and have been investing in BTC through ETFs in Canada and Amsterdam without any major hurdles.

Regarding Point 3: This point makes sense, but again, it doesn't entirely explain why the approval of spot BTC ETFs in Canada and Amsterdam hasn't significantly moved the BTC price. If the approval of a U.S.-based ETF would lead other countries to follow, shouldn't we have seen at least some upward movement already, considering other countries have started to approve them?

Perhaps I'm missing something here. Would love to hear your thoughts. Thank you in advance for sharing your opinions!

​

Submitted September 07, 2023 at 01:42PM by honeysyd https://bit.ly/3Z9qm5H