Bitcoin (BTC) soared to a new high of $28,817 on the back of positive developments in the spot bitcoin ETF space. The cryptocurrency saw a 2.8% increase over the past 24 hours, reaching a two-month high and leading the gains among major tokens. This surge extended its weekly rally to nearly 7%.
One of the notable developments was the amendment filed by asset management giant Fidelity to its proposed spot bitcoin ETF, known as the Wise Origin Bitcoin Trust. Fidelity’s filing with the U.S. Securities and Exchange Commission (SEC) outlined measures to safeguard customers’ bitcoin in custody accounts and disclose risks associated with the regulatory environment surrounding cryptocurrencies. This move follows similar amendments filed by Ark Invest and Invesco recently. Market observers speculate that these actions indicate ongoing discussions between ETF providers and the SEC, fueling bullish sentiment in the market.
James Seyffart, a research analyst at Bloomberg Intelligence, noted in a tweet that these developments are positive signs of potential spot Bitcoin ETF issuers engaging with the SEC regarding necessary changes for approval. These amendments could pave the way for a significant increase in market capitalization. Some firms expect the approval to add at least $1 trillion to the current overall market capitalization of $1.1 trillion in the coming months.
The anticipation surrounding the approval of a spot bitcoin ETF had gained traction earlier in the week, causing bitcoin to surge by almost 10%. Even after the rumor was debunked, prices continued to rise. BlackRock CEO Larry Fink commented that this jump illustrated the “pent-up” investor interest in the crypto market.
Analysts are also optimistic about future Bitcoin price movements. Some predict that bitcoin could touch $29,400 in the near future, citing increasing trading volumes. Alex Kuptsikevich, FxPro senior market analyst, highlighted that the elevated trading volumes indicate fresh buyers entering the market. He stated that buyer interest is primarily focused on bitcoin, with positions near $28,500 suggesting bullish dominance and the potential for the market to quickly move towards the $29.4K level.
The positive sentiment surrounding the spot bitcoin ETF developments and the anticipation of further price gains are contributing to the overall bullish outlook for bitcoin. As the market continues to evolve and regulatory hurdles are addressed, the cryptocurrency’s value and investor interest are expected to grow further.
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