Bitcoin, experienced a substantial surge today, reaching a peak of $28,817, buoyed by positive developments related to a proposed spot bitcoin ETF filing in the United States.
In the past 24 hours, the leading cryptocurrency gained 2.8%, achieving a two-month high and outpacing other major tokens. This climb further extended its weekly rally, accumulating nearly a 7% increase in value.
Fidelity, a prominent asset management firm, submitted an amendment to its proposed spot bitcoin ETF, known as the Wise Origin Bitcoin Trust, to the U.S. Securities and Exchange Commission (SEC) late on Tuesday. The amendment outlined measures to safeguard customers’ Bitcoin assets in custody accounts and addressed concerns related to the ever-evolving regulatory landscape for cryptocurrencies. This proactive approach by Fidelity mirrors recent similar moves by Ark Invest and Invesco, who also revised their spot bitcoin ETF filings. Invesco resubmitted on October 11, with Ark Invest following suit a day later. Market analysts believe these adjustments signal ongoing discussions between potential ETF providers and the SEC, igniting a bullish sentiment among traders.
James Seyffart, a research analyst at Bloomberg Intelligence, noted, “More proof that potential spot Bitcoin ETF issuers are in communication with the SEC regarding changes/amendments required for SEC to consider approving. Positive signs (in my opinion).”
Expectations are growing that once approved, a spot bitcoin ETF will inject at least $1 trillion into the total cryptocurrency market capitalization, which currently stands at $1.1 trillion, in the upcoming months.
Earlier in the week, speculation regarding the approval of a spot bitcoin ETF caused a nearly 10% surge in bitcoin’s value, a surge that BlackRock CEO Larry Fink attributed to “pent-up” investor interest in the cryptocurrency market. Even after the rumor was debunked, bitcoin’s price continued to rise.
Simultaneously, some analysts are predicting that Bitcoin will touch the $29,400 mark in the coming days, citing a noticeable increase in trading volumes.
Alex Kuptsikevich, a senior market analyst at FxPro, commented, “We continue to see continued elevated trading volumes. We view this as good news, given that the price is not high by historical standards. It is an influx of fresh buyers rather than an active exit from the market. Buyer interest is concentrated around bitcoin. Current positions near $28,500 indicate bullish dominance, and the market could quickly move to the $29.4K level,” Kuptsikevich concluded.