Bitcoin Soars Above $30K on the Hope of ETFs
Friday morning saw the breaking of the $30,000 barrier for Bitcoin (BTC), extending its weekly gains to over 11% as optimism over the potential approval of a spot bitcoin exchange-traded fund (ETF) in the United States grew.
In a possible indication of irrational excitement, tokens created by the forking of Bitcoin, Bitcoin Cash (BCH), and Bitcoin SV (BSV), surged as much as 26% to top gains among alternative tokens.
Over the course of the previous week, a number of ETF providers made changes to their applications, and pressure mounted on the U.S. Securities and Exchange Commission (SEC) to flex its stance on approving a bitcoin ETF.
In a letter to SEC Chair Gary Gensler earlier this week, four members of the House Financial Services Committee asked the SEC to heed the courts and give up trying to prevent bitcoin ETFs from receiving regulatory approval.
In other news, several traders became agitated over the possibility of the Grayscale Bitcoin Trust (GBTC) becoming an ETF. Several other asset managers have applied for a bitcoin spot ETF, including Grayscale. GBTC is one of the biggest holdings of Bitcoin among institutions. Fidelity, WisdomTree (WT), and BlackRock (BLK) are some of the other significant companies in the competition.
A decision in favor of Grayscale, according to traders, may make people more optimistic overall and possibly lay the groundwork for a more widespread market upswing.
Lucy Hu, senior trader at Metalpha, stated in a message early on Friday that "Bitcoin has also been encouraged by possible ETF approval and an increasing number of ETF submissions by leading companies." The market is more confident that the ETF will be approved because the SEC decided not to appeal Grayscale's decision, and the deadline for BTC spot ETF applications from organizations like Blackrock is drawing near.
The adoption of the bitcoin ETF and its April halving "could ignite a very robust bull market in the cryptocurrency space," Hu continued. Read More
