Bitcoin Transaction Fees Soar Amid Anticipation of US Spot BTC ETF Approval
Summary:
The anticipation of a Bitcoin (BTC) exchange-traded fund (ETF) approval in the US has resulted in a surge in Bitcoin transaction fees, with the Bitcoin blockchain reaching $11.6 million in fees on Nov. 16. The price of Bitcoin has seen an uptick since major investment managers filed for a spot BTC ETF. While discussions with the SEC continue, the final decisions are expected in January 2024. A spot Bitcoin ETF is projected to attract significant institutional capital, which may drive Bitcoin's price to new heights.
Anticipation of a potential Bitcoin (BTC) exchange-traded fund (ETF) in the US has ignited increased interest in the number one cryptocurrency, resulting in soaring transaction costs. On November 16, the charges on the Bitcoin blockchain hit $11.6 million, as per the numbers from CryptoFees. Present data from YCharts demonstrates that the typical transaction fee stands at $18.69, a rise of 113% from the preceding day and a staggering 746% hike from last year's level.
Current market analysis by Cointelegraph indicates Bitcoin hovering near 18-month peak values and surpassing its bear market trading reach. As of the moment, Bitcoin stands at $36,407, reflecting a 0.58% increment in the last day. The price of Bitcoin has been on an upward trajectory ever since BlackRock, a key investment managing entity, proposed the launch of a direct BTC ETF with the Securities and Exchange Commission (SEC) in June. Post the application by BlackRock, a string of other prime asset management companies, like Fidelity, ARK Invest, and WisdomTree, among others, followed suit in the US.
Even though the SEC seems to be actively interacting with the concerned sector regarding proposal tweaks, a final verdict is yet to come, pushing the ultimate deadlines to January 2024. On the 16th of November, WisdomTree refined its Form S-1 with the regulatory authority, which was succeeded by ARK and 21Shares, Valkyrie, Bitwise, and VanEck making similar modifications. Eric Balchunas, a senior ETF analyst at Bloomberg, suggests that such revisions might be aimed at addressing concerns raised by the SEC. He stated that the suggested alterations indicate that ARK has acknowledged and responded to the SEC’s comments, thus making it the SEC's move to decide. Balchunas considers this a positive sign, signaling solid forward movement.
A direct bitcoin ETF is a fund that resembles the fluctuating price of bitcoin. The direct element signifies that the fund manages the procurement of Bitcoins as the principal asset. It offers investors the opportunity to engage in the Bitcoin market via their customary brokerage accounts. Hence, it provides a means to tap into the volatility of the BTC price without having to acquire it on a cryptocurrency exchange. Consequently, a direct Bitcoin ETF is predicted to attract substantial institutional investors, which may potentially propel Bitcoin to unprecedented highs in the subsequent months. Bloomberg analysts deduce that all the proposals from the same batch in January have a 90% possibility of being sanctioned.
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Published At
11/17/2023 8:18:16 PM
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