Most of the market commentators appear to suggest that when the Bitcoin ETF is launched this will create a tremendous buying pressure on Bitcoin in the spot market, lending to a substantial grow in the price of the largest cryptocurrency in the world.
This line of argument is half right and half wrong. It is correct that the launch of Bitcoin ETF is likely to attract new investors into the cryptocurrency market through the ETF itself. It is however wrong to assume that the buying pressure will be necessarily happening in the spot market, because the approved Bitcoin ETFs might be tracing some derivatives (Futures/Swaps of Bitcoin) rather than directly buying Bitcoins in the spot market.
The actual impact of Bitcoin ETFs may be more psychological in nature. I consider that the market has yet come up with some commonly accepted evaluation approaches on Bitcoin, so we need something which the market generally believes that it will turn the market into a bullish one, e.g. the Bitcoin ETF. This kind of belief, however, can be a kind of bias. When you look at the actual volume of Bitcoin that a future Bitcoin ETF's provider is buying in the spot market, it may be quite different from what the market is expecting nowadays.
Photo source: Crypto News India