A recent report from investment firm Bernstein suggests that the approval of a Bitcoin spot exchange-traded fund (ETF) in the US would bring legitimacy and institutional capital into the cryptocurrency ecosystem. It is predicted that the ETF’s size could reach up to 10% of Bitcoin’s market capitalization in under three years, leading to a price rally for the entire cryptocurrency market. While Canada’s Purpose Bitcoin ETF saw significant success, critics warn of flaws in offering a spot Bitcoin ETF, including the inability to withdraw underlying instruments and the absence of uniform Bitcoin prices. The SEC remains cautious due to concerns about custody solutions and investor protection.

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