If you’ve been following crypto-related news, you’ll know that the approval of a spot Bitcoin ETF has been one of the most anticipated events of 2024. Even months before the approval came in, there was endless discussion about the companies applying, how the ETF would work, and if it would be approved. When it was, there was collective celebration throughout the industry.
Why was this? Simply put, the spot Bitcoin ETF has and will impact crypto use across the board and it is important for crypto users to understand how this will happen.
The first thing to keep in mind is the fact that the spot Bitcoin ETF will have a positive impact on the Bitcoin price. By creating another avenue for investors to buy into Bitcoin, demand for the token will go up and so will its price. The industry has been waiting for Bitcoin to reach a new all-time price high this year and the spot Bitcoin ETF should play a part in it.
This price increase will also see more people choosing to invest in Bitcoin. There is generally more crypto trading volume during bull runs and we can expect the same to happen in this case. We can also expect more people to gamble with Bitcoin. Gambling with crypto has been popular for the last few years but rates of gambling tend to go up during periods of positive market movement. It is one thing to make money from gambling but a whole other thing to have your tokens possibly be worth more after you win. Sites like Megadice accept crypto for placing wagers and as we see more effects of the ETF, more people will likely flock to sites like it.
The increase in trading and the price of Bitcoin also means that more merchants will begin accepting crypto as a means of payment. The higher the value of crypto the more businesses will want to get their hands on it to double their profits and this could mean more places will take crypto for their goods and services.
Then there are those who save in Bitcoin as a long-term investment plan or as a hedge against inflation. During the crypto winter, some investors buy tokens for cheap with the aim of selling them once their price increases. Now that the ETF is driving up the price, some HODLers might choose to liquidate their stash. Bitcoin being valuable could also lead to more consumers sending their funds across borders to family and friends.
Cryptocurrency as a whole has already established itself as a viable way to send money from one place to another and as crypto use spikes this year, so should cross-border transfers of Bitcoin.
The spot Bitcoin ETF was always going to have an impact on crypto users and this will manifest in many ways. From more avenues for spending Bitcoin to making more money from it, Bitcoin activities this year will certainly be affected by the ETF.