Bitcoin Peaks Despite Economic Challenges; Bitcoin ETF Awaits SEC Approval
Summary:
Despite ongoing economic challenges in the US, Bitcoin (BTC) has shown robust performance this week, reaching a daily peak of $28,516. Following Fidelity Investments' updated proposal to the Securities and Exchange Commission (SEC) on their planned spot Bitcoin ETF, there has been renewed optimism about Bitcoin. Meanwhile, the SEC is still holding off on the approval for Bitcoin ETF. As per analysts and market predictions, the approval could potentially result in at least $600 billion in new Bitcoin demand.
This week, Bitcoin (BTC) has demonstrated a strong performance by reaching a daily peak of $28,516, despite ongoing economic challenges in the US. One could attribute the steady price of BTC to the rise in institutional activity and the growing interest of institutional investors in Bitcoin. On October 17, Fidelity Investments, a major asset management firm, updated their planned Bitcoin ETF spot with the Securities and Exchange Commission (SEC). The ETF, named Wise Origin Bitcoin Trust, has outlined how Fidelity intends to secure customers' Bitcoins in custody accounts while also addressing the risks related to the volatile regulation of cryptocurrencies. This follows similar actions by substantial establishments like ARK Invest and Invesco, who also modified their Bitcoin spot ETF filings, ARK Invest on October 11, and Invesco on October 13. This suggests an ongoing dialogue between ETF applicants and the SEC, as Cathie Wood, CEO of ARK Invest, confirmed this week in her statement on ETF Edge. She said that ARK Invest responded to the SEC’s request for information on their Bitcoin filing and that the SEC chose to engage, indicating a change in their behavior. Coupled with Fidelity's filing, Wood's comment has sparked a renewed optimism about Bitcoin. Grayscale's Bitcoin investment tool, Grayscale Bitcoin Trust (GBTC), comparable to an ETF, had its net asset value (NAV) discount premium reach the lowest point since December 9, 2021. On October 14, Grayscale had a victory over the SEC when the commission supposedly decided not to contest an August 29 ruling by the US Court of Appeals, meaning that Grayscale's ETF will now need to undergo review. However, despite the increasing momentum, the SEC is still stalling on the approval of a Bitcoin ETF. Some market analysts predict that the approval, once granted, could likely herald at least $600 billion in fresh Bitcoin demand. Larry Fink, BlackRock CEO, discussed Bitcoin during an October 16 interview on Fox Business. His comments came after a rally sparked by incorrect BTC spot approval news. He stated that he believes the rally is about seeking quality in uncertainty, whether in Treasury bonds, gold, or crypto, depending on one's perspective. Please note that this news article is not intended as investment advice or recommendations. Each investment and trading decision involves risk, so readers should conduct thorough research before making decisions.
Published At
10/18/2023 6:58:02 PM
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