Bitcoin Soars to 17-Month High Amid ETF Anticipation and Rising Institutional Interest
Summary:
Bitcoin's value reached a 17-month high, touching $35,280 amid escalated anticipation surrounding a potential Spot Bitcoin ETF, triggered by BlackRock’s iBTC fund being listed on the DTCC website. Despite the listing's subsequent removal, Bitcoin's bullish momentum persisted. The surge lays emphasis on the growing institutional interest in Bitcoin. Despite a rush of spot Bitcoin ETF amendments, the BlackRock iBTC fund is the first to be listed by a clearing entity. This development, along with the continued exodus of Bitcoin from exchanges, has helped boost market sentiment.
Today, Bitcoin (BTC) witnessed an appreciation in its value, attaining a peak of $35,280 during the day, marking a 17-month high before reducing a tad. The growth in Bitcoin's value is coupled with escalating enthusiasm surrounding a prospective Spot Bitcoin ETF, amplified by BlackRock’s iBTC fund being listed on the Depository Trust & Clearing Corporation (DTCC) website. Despite the listing subsequently disappearing, Bitcoin maintained its bullish momentum, given that such a listing typically serves as a preliminary phase before an ETF gets officially sanctioned.
Though Bitcoin's price saw a slight retreat from the $35,000 mark, factors fueling this week's surge could suggest the possibility of a persistent rally. Let's explore why Bitcoin's value is on the rise today. Bitcoin's popularity among institutional investors appears to be bolstering market mood.
Against a backdrop of considerable macroscopic headwinds, BlackRock’s Spot Bitcoin ETF listing on a Nasdaq trade clearing company seems to have triggered Bitcoin’s climb to $35,280, a plateau not seen in over twelve months. Amid a flurry of Spot Bitcoin ETF amendments in Mid-October, BlackRock's iBTC fund is the pioneer to be listed by the clearing entity.
The SEC, so far, has shied away from green-lighting a Spot Bitcoin ETF, despite a number of applicants seeking approval including BlackRock, Fidelity, ARK Invest, and 21Shares (which has sought approval thrice). On October 14, Grayscale emerged victorious after the SEC confirmed its intention not to contest the verdict of U.S. Court of Appeals Circuit Judge Neomi Rao. This led to Grayscale filing a fresh Spot Bitcoin ETF application on October 19.
So, what could a Spot ETF imply for BTC's prospects? Market analysts continue to project potential outcomes of Spot Bitcoin ETF endorsement on BTC's price. Estimations suggest an approval might kindle $600 billion in fresh demand. CryptoQuant posits an ETF nod could result in a $1 trillion growth in Bitcoin’s market capitalization.
A report unveiled by Galaxy Digital on October 24, claims that a Bitcoin ETF authorization could result in inflows of at least $14.4 billion within the initial year, culminating in $38.6 billion by the end of the third year.
Moreover, the founder of Capriole Investments, Charles Edwards, implies that gold's emergence from a bearish market to generate a 350% return followed a Gold ETF's approval.
Simultaneous with Bitcoin's price appreciations, exchanges are witnessing a mass exodus of BTC. The market tends to interpret coins departing crypto exchanges as a bullish token, since traders typically withdraw their BTC when they plan to keep it in self-custody for an extended period. As Bitcoin continues leaving exchanges, this triggers potent effects on the price. In the past day alone, BTC shorts worth over $181.3 million were liquidated, with shorts exceeding $4.5 million liquidated within a single hour.
Coinciding with the "double short-squeeze," Bitcoin futures open interest swelled to 100,000 BTC on the Chicago Mercantile Exchange (CME), a feat achieved only twice in history. The last instance of CME Bitcoin open interest touching the 100,000 BTC mark was on November 22, 2022.
These developments are aiding in strengthening market sentiment. The Bitcoin Fear & Greed Index depicts a shift from fear to greed within the market, advancing by 22-points within a month.
This report is intended to aid readers in conducting their own research prior to proceeding with any investment or trading decisions, given the inherent risks involved.
Published At
10/24/2023 7:39:57 PM
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