During the early hours of Tuesday’s trading session, the value of Bitcoin (BTC) took a leap, breaching the $34,000 barrier and marking a peak not seen since May 2022. The most prominent cryptocurrency in terms of market cap (last at $670 billion) was last trading above the mid-$34K level, its surge fueled by mounting optimism over the potential establishment of a Bitcoin ETF (Exchange-Traded Fund).
This wave of positivity towards a prospective Bitcoin ETF gained traction following the Court of Appeals’ directive issued yesterday in the Grayscale Investments versus the U.S. Securities and Exchange Commission (SEC) case. This ‘official mandate’ effectively instructs the SEC to overturn its initial denial and reassess Grayscale Investments’ proposal to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
The crypto market has been riding a wave of growth in recent days, with Bitcoin breaking through the $30,000 ceiling. On Monday, it ascended beyond $31,000 for the first time since May, propelled by the anticipation that the mandate would pave the way for an ETF.
XRP holders’ legal representative John Deaton was quick to sarcastically highlight that this Bitcoin surge was accurately predicted. On October 10, CNBC’s Jim Cramer voiced skepticism about Bitcoin’s future, hinting at a significant downturn on the horizon.
We all know who called the bottom. The day @jimcramer said #Bitcoin was going down and everyone should sell. https://t.co/9iiJGTUzIg
— John E Deaton (@JohnEDeaton1) October 24, 2023
It’s worth noting that BTC’s current bullish trajectory could potentially receive additional impetus from BlackRock (NYSE:BLK), a titan in the investment management arena.
Reports suggest that it has revised its Bitcoin ETF proposal, thereby possibly setting the stage for a rollout this month. Additionally, BlackRock’s spot BTC ETF was listed on the Depository Trust & Clearing Corporation (DTCC), moving it a step closer to regulatory approval.
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
The positive shift in the crypto market can also be attributed to the increasing clarity in cryptocurrency regulations, seen through Coinbase’s legal battle with the SEC.
The SEC has accused Coinbase of operating as an unregistered exchange, broker, and clearinghouse, alleging that at least 13 of the cryptocurrencies it offered to U.S. investors, including Solana (SOL), Cardano (ADA), and Polygon (MATIC), were securities.
Coinbase, steadfast in its commitment to defend itself in court, argues that the SEC’s claims about unregistered securities are missing evidence of actual contracts. This strategy draws similarities with Ripple’s (XRP) effective defense approach.
It’s obvious that the recent surge in Bitcoin value and the overall cryptocurrency market is being driven by a combination of factors. The potential for a Bitcoin ETF, led by significant players like Grayscale Investments and BlackRock Inc, has generated substantial optimism. Moreover, the increasing clarity around cryptocurrency regulations, highlighted by Coinbase’s defense against the SEC, is also contributing to this trend.
These developments indicate a maturing market, with institutional acceptance and regulatory clarity paving the way for more significant growth in the future. However, as with any investment, caution and due diligence are advised given the volatility inherent in the crypto space.
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
Leave a Reply