Bitcoin Price Surges amid Possibility of Bitcoin ETF Approval

Bitcoin, the world’s largest cryptocurrency by market capitalization, has continued its steady ascent to the $30,000 mark. The digital currency climbed to $29,800 in the past 24 hours, extending its weekly gains to over 11%. Bitcoin hit a 2023 peak price of $31,809 on July 13. However, it has struggled to reclaim its $30,000 level since July 24. In August, it further depreciated to rest at $26,000.

Price Surge Driven by Bitcoin ETF Sentiments

This recent surge in price is driven by bullish sentiment around a possible spot bitcoin exchange. There is optimism among investors and traders that the US Securities and Exchange Commission (SEC) may be close to approving a Bitcoin ETF.

Recall that Grayscale has been looking to convert its Grayscale Bitcoin Trust (GBTC), the largest institutional Bitcoin holding, into an ETF. In August, the Court ruled in favor of Grayscale, overturning the SEC’s decision to reject the review.

More recently, the SEC opted not to appeal the ruling, sparking conversations about a possible approval. Following this decision, several ETF providers amended their filings in the past week, putting pressure on the SEC to approve a bitcoin ETF.

Again, four House Financial Services Committee members wrote a letter to SEC Chair Gary Gensler, urging him to stop efforts to prevent the regulatory approval of bitcoin ETFs. Many traders believe a ruling in Grayscale’s favor could further increase the bullish sentiment and lead to a broader market climb.

Bulls Expect Further Surge

Meanwhile, the potential for such an ETF has sparked a bullish call among Bitcoin enthusiasts. Founder and managing partner at SkyBridge Capital, Anthony Scaramucci noted he expects bitcoin to become a $15 trillion asset. Scaramucci explained that the digital asset is potentially more valuable than gold.

Elsewhere, a senior trader at Metalpha, Lucy Hu, said:

“[With the] bitcoin ETF approval and halving event in April, the crypto market could kickstart a very robust bull market.”

To underscore the bullish sentiments, the performance of Bitcoin forks reflects the same optimism among investors. Among alternative tokens, Bitcoin Cash (BCH) and Bitcoin SV (BSV) gained the highest, jumping as much as 26%.

Regardless, Bitcoin was trading at $29,718, according to CoinMarketCap at the time of writing.

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2023-10-20 14:21