Bitcoin Bulls, Rejoice! Price Nears $30k as SEC Spot ETF Approval Inches Closer – Coinpedia Fintech News
October 18, 2023Ongoing talks between spot Bitcoin ETF applicants and the SEC are fueling Bitcoin’s price surge.
Major players in the Bitcoin ETF arena are refining their applications to align with the SEC’s latest recommendations.
Analysts have significantly increased the odds of spot Bitcoin ETF approval.
In a significant move, Bitcoin came close to hitting the $29,000 mark, sparking renewed optimism in the world of cryptocurrency. This surge in value can be attributed to ongoing talks between applicants seeking approval for a spot Bitcoin Exchange-Traded Fund (ETF) and the U.S. Securities and Exchange Commission (SEC).
These discussions include crucial changes, ranging from how Bitcoin is held in custody to its environmental impact through mining.
Key Amendments in Focus
To delve into the important changes being proposed, let’s explore the key areas of concern: custodial practices, adherence to Generally Accepted Accounting Principles (GAAP) standards, disclosure of risks, and the environmental implications of mining operations.
As of now, Bitcoin not only breached the $29,000 mark but also came tantalizingly close to the $30,000 milestone. Despite a noticeable retreat from the critical resistance level at $28,446, it has maintained its position around these levels, signaling strong bullish sentiment in the market.
This persistence in Bitcoin’s performance may help it regain the $29,000 threshold it briefly lost. Over the past 24 hours, Bitcoin’s price has surged by 2%, and over the week, it has risen by 6%, surpassing the $30,000 mark. This surge is primarily fueled by increased interest from institutional investors and positive sentiment in the market.
What Next for Bitcoin?
The market is now eagerly awaiting Bitcoin’s next move. While other cryptocurrencies grapple with regulatory hurdles imposed by the SEC, the approval of a Spot Bitcoin ETF is expected to further enhance Bitcoin’s bullish outlook before the end of the year.
Let’s closely observe how the crypto market reacts to the SEC’s ongoing discussions about ETF approval.
Also Read: Bitcoin Price Could Surge to $73,000 on Spot ETF Approval: CryptoQuant
Analyst Insights
According to James Seyffart, an ETF analyst at Bloomberg, the recent developments indicate a positive shift in the likelihood of the SEC approving spot Bitcoin ETFs. Although additional revisions are anticipated, the ongoing dialogue underscores the growing confidence in the potential approval of these ETFs.
Notably, analysts have significantly increased the odds of approval, especially following the updates made by major players such as Ark Invest and 21Shares to their spot Bitcoin ETF proposals. Additionally, Seyffart anticipates that the SEC will grant approval by January 10.
“This back-and-forth between the SEC and fund sponsors is standard practice for new launches but a first for spot Bitcoin ETF applications, indicating that the SEC is working to approve Ark’s proposal.”
Fidelity Jumps on the ETF Wagon
To enhance their chances of approval, Fidelity Investments has aligned its spot Bitcoin ETF filing with the latest recommendations from the SEC, demonstrating a concerted effort to navigate the regulatory landscape successfully. This trend is mirrored by other significant players in the Bitcoin ETF arena who are also refining their applications.
The Enthusiasm is Now Through the Roof!
The SEC’s decision to deny an appeal in the Grayscale case is stirring excitement among spot ETF enthusiasts, as they interpret this as a positive signal indicating that the SEC may greenlight all pending ETF applications. In this context, Grayscale believes that converting its Grayscale Bitcoin Trust (GBTC) into an ETF would bring prices more in line with the actual value of Bitcoin.
Read More: Major Players Eye Bitcoin ETFs: What it Means for Crypto Investors?
Such a shift would allow for the creation or removal of ETF shares based on demand, potentially eliminating any price discount.
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