Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.
Approval of the highly-anticipated spot-based bitcoin exchange-traded funds is partially priced in, Coinbase Institutional's David Duong Argues.In financial markets, a particular asset often stands out on the back of unconfirmed good news, while the broader market suffers due to adverse macroeconomic developments.
"We think the divergence in the performance of bitcoin and other tokens shows that the potential approval of one or more spot bitcoin ETPs has already been partially priced in. That makes it less clear how much more bitcoin could outperform if a favorable U.S. Securities and Exchange Commission decision occurs," David Duong, head of institutional research at Coinbase Institutional, said in the latest monthly report sent to subscribers on Thursday.
"This deviation started to emerge in mid-June, around the time of multiple spot bitcoin exchange-traded product ETP filings in the U.S.," Duong said. "That [pricing of spot ETF) makes it less clear how much more bitcoin could outperform if a favorable U.S. Securities and Exchange Commission SEC decision occurs. That is, in the event of one or more approvals, we believe there could be meaningful net inflows, but these may take time to materialize while markets tend to be impatient," Duong said.
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