Bitcoin Jumps Over $30K as ETF Hope Drives Bulls
In a remarkable turn of events, Bitcoin (BTC) crossed the $30,000 milestone, marking an impressive weekly gain of over 11%. This surge in value can be attributed to the growing optimism surrounding the approval of a Bitcoin exchange-traded fund (ETF) in the United States.
A Surge in Bitcoin Forks and Alternative Tokens
Notably, Bitcoin forks, such as Bitcoin Cash (BCH) and Bitcoin SV (BSV), outshone major cryptocurrencies by skyrocketing up to 26% within the past 24 hours. This surge in alternative tokens hints at a potential wave of irrational exuberance within the cryptocurrency market.
ETF Providers Make Moves
In a flurry of activity, several ETF providers have recently adjusted their filings over multiple days, putting pressure on the U.S. Securities and Exchange Commission (SEC) to reconsider its stance on Bitcoin ETF approvals. The SEC has faced mounting calls to ease its resistance to Bitcoin ETFs, with four House Financial Services Committee members urging the regulatory body to heed the courts and cease efforts to hinder Bitcoin ETFs from gaining regulatory approval. Their plea was conveyed in a letter addressed to SEC Chair Gary Gensler.
The Grayscale Bitcoin Trust (GBTC) Conversion Hopes
Additionally, market excitement was stoked by hopes that the Grayscale Bitcoin Trust (GBTC) might undergo conversion into an ETF. GBTC stands as one of the most significant institutional holders of Bitcoin, and Grayscale is among the numerous asset management firms vying for a Bitcoin spot ETF.
Other major players in this race include BlackRock (BLK), Fidelity, and WisdomTree (WT). The possibility of a favorable ruling for Grayscale is sparking optimism among traders, who believe that such an outcome could shift overall sentiment towards a more bullish stance, potentially laying the foundation for a broader market upswing.
Bright Prospects for the Crypto Market
Lucy Hu, a senior trader at Metalpha, expressed her views on the matter, stating, “Bitcoin has also been encouraged by possible ETF approval and an increasing number of ETF submissions by leading companies.” She added, “The SEC opted for a no-appeal on Grayscale’s ruling, and as the deadline for BTC spot ETF applications from institutions such as BlackRock looms closer, the market’s confidence in ETF approval has increased.”
Hu went on to suggest that with the Bitcoin ETF approval and an upcoming halving event in April, the cryptocurrency market might be on the verge of a robust bull market.