Bitcoin Growth: SEC in Talks with Grayscale on Converting BTC Fund to a Spot Bitcoin ETF
Date: 2023-11-09 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Why Bitcoin Continues to Rise
Bitcoin is wrapping up the week with an impressive surge, returning to levels last seen in May 2022. This significant recovery has sparked interest and excitement within the crypto community. But what exactly has triggered this ascent of Bitcoin?
On November 9th, Bitcoin embarked on a rapid ascent, gaining nearly 5% in just a few hours. Within 24 hours, the price reached a peak of $36,493, a level not witnessed since May 8, 2022. This sharp rise has captured the attention of crypto investors and traders and stirred excitement in financial markets.
In the wake of this surge, other cryptocurrencies, such as Cardano and Dogecoin, also demonstrated positive momentum. It's important to note that Bitcoin, as the leading cryptocurrency, often sets the tone for other coins. However, what lies behind this rapid rise?
According to reports, news of the U.S. Securities and Exchange Commission (SEC) entering negotiations with Grayscale became a key driver of Bitcoin's growth. The discussions revolved around the conversion of Grayscale's BTC fund into a spot Bitcoin ETF. This is a significant development, as the United States has yet to see a spot Bitcoin ETF. In late August 2023, a court ruled in favor of Grayscale, requiring the regulator to reconsider the company's application for fund conversion into an ETF. The SEC decided not to appeal the court's decision.
Another factor that heightened interest in Bitcoin was the hints from Bloomberg analysts. They suggested that the SEC had a window open until November 17th for approving ETF applications. The timing was linked to the deadline for receiving comments on the applications, which expired on November 8th. Technically, according to Bloomberg analysts, the SEC could make a decision at any time until January 10, 2024.
The Significance of a Spot Bitcoin ETF
A spot Bitcoin ETF represents a significant event for the cryptocurrency world and financial markets at large. Since the launch of the first such ETF in the United States, it is expected to bring a substantial influx of investments into the digital asset market, estimated to be in the trillions of dollars. This could be a pivotal moment in attracting institutional investors and solidifying Bitcoin's position as digital gold.
