The price of Bitcoin (BTC) soared to the high $44,800s on Thursday, with hopes of retesting the $45,000 level. This surge follows reports suggesting that the US Securities and Exchange Commission (SEC) is likely to approve multiple spot Bitcoin Exchange Traded Fund (ETF) applications. TechCrunch’s senior crypto reporter, Jacquelyn Melinek, shared this news on X (formerly Twitter), citing sources who are “extremely close to the matter”.
Currently, Bitcoin is trading in the $44,400s, experiencing a gain of over 7% from Wednesday’s lows. However, it is still down by approximately 3% compared to recent highs near $46,000. The anticipation of spot Bitcoin ETFs gaining approval has been a driving force behind Bitcoin’s rally. In June of last year, BlackRock, one of Wall Street’s major players and the world’s largest asset manager, filed for their own spot Bitcoin ETF.
The approval of spot Bitcoin ETFs in the US is highly anticipated. This approval serves as a significant validation for Bitcoin as an asset class by US regulators. Consequently, it can alleviate traditional investor concerns regarding the legitimacy of Bitcoin. Additionally, the approval is expected to attract new demand for BTC, as many traditional investors have been waiting for a regulated spot product to enter the Bitcoin market, avoiding the complexities associated with cryptocurrency exchanges and wallets.
“The approval of spot Bitcoin ETFs will unlock a wave of new demand for BTC.”
Earlier in the day, Bloomberg analyst Eric Balchunas stated that the SEC is currently giving final comments, with issuers expected to submit final 19b-4s and S-1s shortly afterward. The recovery of Bitcoin, with a gain of over 3.5% in a day, has reversed most of Wednesday’s decline from yearly highs. During that time, sentiment was affected by a report from Matrixport, a widely followed crypto analytics firm, claiming that the SEC would reject or delay spot Bitcoin ETF applications. However, most analysts dismissed this report as baseless.
