The prospect of a regulated spot Bitcoin ETF has roused cryptocurrency investors into a frenzied bull run. They expect an ETF product to on-ramp millions of investors in structured broker-dealer accounts.

Since March, Bitcoin (BTC) has traded in a range bound by support at $25,000 and resistance at the $30,000 level. As spot ETF rumors spread in October, the price surged from below $27,000 to above $37,000 by Nov 10.

Meanwhile, investors added $366 billion to the overall crypto market cap since October. Coinbase believes approval of a Bitcoin ETF will likely add billions more but says, “this will take time.”

Coinbase: Why A Bitcoin ETF Matters

In a recent report, Coinbase said final regulatory approval for a Bitcoin ETF “will open up a massive opportunity for the wealth management community, which handles over a third of all wealth in the US.”

The San Francisco-based cryptocurrency exchange noted the opportunity addresses an untapped market of demand for Bitcoin’s unique benefits as a standalone asset class:

“These are not market participants that would otherwise buy and custody bitcoin independently, but instead rely on ETFs to build their unique investment strategies.”

David Duong, Coinbase’s head of institutional research, said, “The opportunity is potentially much greater than just enabling new capital to access the crypto market.”

His argument is that the entrance of a new class of participants will improve Bitcoin markets with new intelligence and insights:

“ETFs will ease the restrictions for large money managers and institutions to buy and hold bitcoin, which will improve liquidity and price discovery for all market participants.”

Furthermore, the report says a Bitcoin ETF will allow saver investors in regulated money management accounts to access Bitcoin-based lending, futures, and options products.

Waiting On The SEC

There’s no telling for sure when the SEC will approve any of a dozen Bitcoin ETF applications. The Securities and Exchange Commissio