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As Bitcoin experiences a rebound, speculation arises once again that the U.S. Securities and Exchange Commission (SEC) is on the verge of approving an exchange-traded fund (ETF) directly investing in Bitcoin.
At the time of writing, Bitcoin has risen by 2.1%, trading at around $43,000, rebounding from the drop on Tuesday. Other major cryptocurrencies have also seen increases. Bitcoin Cash, an early fork of Bitcoin, has risen by 14% as investors flock to instruments tracking the coin.
On Tuesday, Grayscale Investments announced that Barry Silbert, the founder and CEO of its parent company, Digital Currency Group, has resigned as chairman, with Mark Shifke set to take over. This move comes ahead of the January 10 deadline for the U.S. Securities and Exchange Commission (SEC) to decide whether to approve the first-ever spot Bitcoin ETF. Grayscale is seeking approval to convert its world's largest Bitcoin trust into an ETF.
Hayden Hughes, co-founder of the social trading platform Alpha Impact, stated, "Silbert's resignation is seen as an overall positive sentiment for Bitcoin demand." People also anticipate that, after Silbert's resignation, the SEC might allow other Grayscale products to be listed as ETFs, driving institutional demand for the Grayscale Bitcoin Cash Trust.
The Grayscale Bitcoin Cash Trust surged by 18% on Tuesday, with trading volume more than seven times the six-month daily average.
A key question is whether the actual listing of these products will stimulate some profit-taking, based on the adage of investors "buying the rumor and selling the news." In other words, it is still unclear how much interest there will be in the actual listings of spot Bitcoin ETFs from companies such as BlackRock and Fidelity.
Nic Carte, founding partner of Castle Island Management LLC, expressed a belief that the U.S. SEC is "almost certain" to approve the spot Bitcoin ETF before January 10. He indicated that these funds would broaden the base of cryptocurrency investors in the medium term, while also hinting at the possibility of a "news sell-off event" in a shorter timeframe.
Expectations of a decline in U.S. interest rates have also driven Bitcoin's rise this year. This rebound somewhat compensates for the damage caused by the crypto industry crash in 2022. However, the token is still below the record of nearly $69,000 during the 2021 COVID-19 pandemic period. |
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Post time 30-12-2023 11:00:07