- Bitcoin hit $29,000 overnight after a flurry of activity concerning a Bitcoin ETF
- Two former Bitcoin ETF applications renewed their claims
- The Grayscale Bitcoin Trust saw a 400% increase in trading volume
Bitcoin hit $29,000 overnight as the Bitcoin ETF application frenzy continued. Following the news that BlackRock has filed a Bitcoin ETF application, with Fidelity possibly to follow, trading volume for Grayscale Bitcoin Trust shares (GBTC) jumped 400% and two firms, WisdomTree and Invesco, renewed their Bitcoin ETF applications yesterday. With institutional interest suddenly spiking, Bitcoin could surpass its bear market peak of $31,000, with $32,500 a potential target.
Bitcoin ETF Revival
The potential of a Bitcoin spot ETF had all but died in the wake of the multiple rejections over the years and the manner in which the crypto space is being treated by the Securities and Exchange Commission (SEC), which is the arbiter of such a move, and yet BlackRock’s filing last week seems to have galvanized the space.
GBTC shareholders know that conversion to a Bitcoin ETF is the only way they will be able to realise the gains (or recoup the losses) they have made, and it seems that BlackRock’s filing has given them more hope that Grayscale will successfully convert to an ETF as well; daily trading volume of GBTC was $16.1 million the day before BlackRock announced its Bitcoin ETF filing, a figure which rocketed to $80 million within 48 hours:
It seems like the fever is catching, as previously rejected Bitcoin ETF applicants are suddenly reviving their interest; Monday saw WisdomTree, which had its application rejected in October 2022, refiled for the WisdomTree Bitcoin Trust, while yesterday saw Invesco, which pulled a Bitcoin futures and spot ETF in 2021, reactivate theirs.
Bitcoin Price Reacts to Developments
This flurry of ETF activity has had a positive impact on Bitcoin’s price, which jumped $2,300 yesterday, remaining in a three-month-long channel:
If Bitcoin can break above this area of resistance at $30,500 then a rise to $32,500 could be the ultimate top for the bear market rally:
Only once Bitcoin clears this key region can we even begin to dream of another bull market. This had seemed far off, but if a Bitcoin ETF is approved then the market may shift in Bitcoin’s favor once again.
