Strong optimism in the crypto community over the possible approval of a Bitcoin ETF in the United States has been driving the price of Bitcoin upwards since the middle of this year.
Since BlackRock, the world's largest fund manager, filed an application to launch a Bitcoin spot ETF in the United States, The general sentiment of the crypto community has completely changedThis is because BlackRock's ETF filing with the Securities and Exchange Commission (SEC) not only pushed the price of Bitcoin higher in the market, but also served as motivation for other asset managers to once again seek approval from the securities regulator to launch an exchange-traded fund based on the price of the cryptocurrency.
To date, the SEC has yet to approve any of the applications submitted for a Bitcoin ETF. However, the crypto community's optimism is stronger than ever.
Bitcoin price exceeds $38.000
Recently, the price of Bitcoin marks a new annual high, reaching $38.390 last Friday. Over the past week, the price of Bitcoin has seen a 6,9% increase, driven primarily by further progress in the Bitcoin spot ETF.
Source: CoinMarketCap
As reported by this media, BlackRock, Nasdaq and Grayscale Investments have met with the SEC's division of trading and markets to discuss the details and possible listing of a Bitcoin spot fund on the US market.
According to the memorandum of each meeting, published by the SEC, details were discussed regarding the modification of the Nasdaq stock market rules for the listing of the shares of the company. iShares Bitcoin Trust (IBTC) from BlackRock and on NYSE Arca's proposed rule change for the listing and trading of shares of Grayscale Bitcoin Trust (BTC), owned by Grayscale Investments.
In addition to these meetings with the securities regulator, other fund managers, also seeking approval to launch a Bitcoin spot ETF in the US market, have updated their filings to comply with SEC requirements.
Eric Balchunas, specialized in ETFs, said that these updates are a positive sign, which indicates that fund managers are “getting into shape” to obtain SEC approval.
How high will the price of Bitcoin go?
At the time of writing this article, the Bitcoin price has retreated to $37.500 per BTC, showing a slight correction of 2,3%. However, as mentioned at the beginning, the optimistic sentiment of the crypto community remains intact.
In fact, Laurent Kssis, former 21Shares executive and managing director and head of Europe at Hashdex, emphasized in a recent interview with CoinDesk that Bitcoin ETF is “lurking around the corner” and that, on the most likely date that experts point to, January 11, we can expect “a new layer of volatility in the market.”
According to Kssis, the potential approval of a Bitcoin spot ETF in the United States will open the doors to capital from institutional investors, who want exposure to the price of Bitcoin but are unable to acquire or trade the cryptocurrency on current exchange platforms due to compliance requirements. In contrast, a Bitcoin ETF offers ease of trading, profitability and compliance, providing a safe entry for these investors and their capital, Kssis explained.
According to their projections, the price of Bitcoin could reach $40.000 in the coming days, driven by the strong optimistic sentiment of investors and the crypto community.
Likewise, experts point to a higher price for the market-leading cryptocurrency next year, considering the arrival of the fourth Bitcoin halving, which will reduce the issuance and increase the scarcity of the cryptocurrency. These factors are crucial for the new bull market of Bitcoin and cryptocurrencies.
Continue reading: SEC is changing its approach to Bitcoin spot ETF, says 21Shares
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