Bitcoin, fueled by ETF optimism, soars to an astounding $30,000, cementing its position as the future of digital currency.
Bitcoin Surpasses $30,000 as Spot Bitcoin ETF Hopes Drive Rally
Bitcoin reached a milestone on Friday, surpassing the $30,000 mark before retracing some of its gains. The world’s largest cryptocurrency was trading around $29,613 at 9:45 a.m. in New York, marking a 4.5% increase and putting it on track for a 10% gain for the week.
The recent rally in Bitcoin can be attributed to the growing optimism surrounding a spot bitcoin exchange-traded fund (ETF). Earlier this week, the price of Bitcoin spiked 10% briefly after a false tweet claimed that the Securities and Exchange Commission (SEC) had approved BlackRock’s application for a spot bitcoin ETF.
While the SEC has previously approved bitcoin futures ETFs, it has consistently rejected applications for bitcoin spot ETFs. However, the entry of major players like BlackRock and Fidelity into the race has raised hopes for the approval of a spot bitcoin ETF.
Billionaire investor Mike Novogratz, CEO of Galaxy Digital, remains bullish on the prospect of a spot bitcoin ETF gaining approval. Novogratz anticipates that such a product will be approved before 2024, citing the increasing number of requests for the product in the past year.
In a recent lawsuit between regulators and Grayscale, the court ruled against the SEC, stating that allowing a futures ETF but not a spot ETF “makes intellectually zero sense.”
The optimism for a spot bitcoin ETF is not limited to industry experts. A group of House Financial Services Committee members urged the SEC to reconsider its efforts to block the approval of a spot bitcoin ETF in a letter to Gary Gensler earlier this week.
Search interest in “spot bitcoin ETF” on Google Trends is also on the rise, approaching a five-year high. This indicates growing mainstream interest in the potential approval of a spot bitcoin ETF.
As the anticipation for a spot bitcoin ETF continues to build, Bitcoin’s price is likely to remain volatile. Investors and enthusiasts will closely monitor any developments regarding the SEC’s stance on the matter.
Disclaimer: The information provided is for informational purposes only and should not be considered financial advice. Investing in cryptocurrencies involves risk, and individuals should conduct thorough research before making any investment decisions.