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"The approval of a Bitcoin spot ETF by the U.S. Securities and Exchange Commission is crucial for the cryptocurrency industry. This will simplify the way mature investors acquire Bitcoin, potentially increasing its adoption and mainstream availability. With institutional adoption, many investors anticipate Bitcoin reaching new all-time highs (ATH) in the next bull market cycle.
A recent report from blockchain data tracker Santiment shows a significant increase in a specific category of Bitcoin investors. Currently, there are 10 wallets holding at least 157,400 BTC, surpassing the historical high set in 2019, with a growth of 20% over the past 8.12 months. This growth marks an increase in Bitcoin holdings since the beginning of 2022.
Last week, Bitcoin dropped by 3.7%, struggling to reach $28,000, with a first-time dip to $26,500 during the month. The decision by the U.S. Securities and Exchange Commission not to appeal the ruling in favor of Grayscale provided some relief, but Bitcoin's price did not surge. Nevertheless, expectations remain high, especially regarding the potential approval of a spot ETF.
SEC Not Appealing: Good News for Bitcoin ETF?
The U.S. Securities and Exchange Commission is facing significant legal backlash, which is why it chose to remain silent on the Grayscale lawsuit. The SEC's stance is always uncertain, and this decision has been a topic of controversy within the industry. The Bitcoin spot ETF emerged after the SEC refused to appeal a favorable court decision for the Grayscale Bitcoin ETF. This doesn't guarantee approval, but it indicates that the SEC might face greater challenges in rejecting Bitcoin spot ETF applications. The court now needs specific reasons for denial, which could alter regulations.
Cryptocurrency Community's Reaction to the First Bitcoin Spot ETF
Amid the current excitement, the market is filled with approval joy. Renowned cryptocurrency analyst @rovercrc predicts that, driven by Grayscale's victory, the first Bitcoin spot ETF will make its debut within 60-70 days. The initial deadline for Bitcoin spot ETF applications was October 10th, led by Cathie Wood's Ark Investment.
On the other hand, Bloomberg analysts assert with confidence that the likelihood of a spot Bitcoin ETF approval is 90% by October 10th, 2024. This outlook adds an extra layer of optimism, although market reactions are relatively subdued under the leadership of Gary Gensler, given the SEC's historically unpredictable stance.
Market Reaction and Bitcoin's Surge
Despite expectations, the market remains relatively stable. However, the certainty surrounding the Bitcoin spot ETF is expected to change the game, especially for an institutional bull market. According to recent reports, Bitcoin has surged by 24% in the past 1.31 hours, reaching around $27,204.97. It's worth noting that Bitcoin's daily trading volume is approximately $7.76 billion, a significant increase of 46.52% compared to the previous trading day." |
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Post time 19-10-2023 23:23:48