Worldsfeed Tech Desk: Bitcoin (BTC) surged beyond $30,000 on Friday morning, fueled by optimism surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. This price increase marked a weekly gain of over 11% for the leading cryptocurrency. At the same time, tokens resulting from Bitcoin forks, like Bitcoin Cash (BCH) and Bitcoin SV (BSV), witnessed impressive surges of up to 26%, hinting at growing enthusiasm in the market.
The positive sentiment towards a Bitcoin ETF approval in the U.S. gained momentum as several ETF providers modified their filings during the past week. Additionally, there has been mounting pressure on the U.S. Securities and Exchange Commission (SEC) to reconsider its stance on Bitcoin ETFs. This week, four members of the House Financial Services Committee urged the SEC to heed the court rulings and abandon its opposition to regulatory approval of Bitcoin ETFs.
Hopes of converting the Grayscale Bitcoin Trust (GBTC) into an ETF have also stirred excitement among traders. GBTC is among the largest institutional holders of Bitcoin, and Grayscale is one of many asset management firms seeking a spot Bitcoin ETF. Prominent companies in this race include BlackRock (BLK), Fidelity, and WisdomTree (WT). A favorable ruling for Grayscale could significantly bolster market sentiment and potentially lay the foundation for a broader market uptrend.
Lucy Hu, a senior trader at Metalpha, commented on these developments, stating that Bitcoin’s prospects are bolstered by the potential ETF approval and the growing number of ETF submissions by major corporations. The SEC’s decision not to appeal the ruling on Grayscale, combined with the impending deadline for Bitcoin spot ETF applications from institutions like BlackRock, has boosted market confidence in ETF approval. Hu also highlighted that with Bitcoin ETF approval and the upcoming halving event in April, the cryptocurrency market could embark on a robust bullish trend.