The price of Bitcoin surged to a new 13-month high, breaking above $31,500 on July 6th. This surge is attributed to positive market sentiment driven by the anticipation of a Bitcoin ETF approval by the US SEC. BlackRock's iShare Bitcoin Trust ETF application and Grayscale's lawsuit against the SEC have fueled optimism for approval. Industry analysts predict a 50-70% chance of approval, indicating that the SEC is considering opening doors for wider crypto adoption in the financial sector.
Bitcoin Breaks $31,000, Fueled by Anticipation of ETF Approval
Jakarta, Indonesia - The price of Bitcoin has surged to a 13-month high as investors eagerly await the potential approval of a Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC).
On Thursday, July 6, the price of Bitcoin (BTC) reached $31,500, its highest point since June 2022. Despite a slight dip to around $31,200 as of writing, market sentiment remains overwhelmingly positive.
The optimism stems from the highly anticipated Bitcoin ETF spot, which would allow investors to trade Bitcoin on traditional stock exchanges. The iShares Bitcoin Trust ETF application, proposed by global asset management giant BlackRock, is currently under consideration by the SEC.
If approved, the ETF could significantly boost Bitcoin's price by broadening its accessibility to institutional investors and reducing volatility. Rachel Lin, CEO of decentralized derivative protocol SynFutures, expressed confidence in the potential price increase but cautioned that a correction to $27,500 is possible if Bitcoin falls below $29,500.
In recent weeks, the SEC has received multiple applications for Bitcoin ETFs. Companies such as WisdomTree, Invesco, Fidelity Investments, ARK Invest, Valkyrie, and Bitwise have all submitted proposals. While previous Bitcoin spot ETF applications have been rejected by the SEC, BlackRock's application is seen as having a higher chance of success due to its inclusion of surveillance split agreements (SSAs) designed to prevent market manipulation.
Grayscale Investments, a leading digital asset manager, recently filed a lawsuit against the SEC after its Bitcoin ETF application was denied. Grayscale CEO Michael Sonnenshein expressed disappointment over the rejection. Bloomberg senior ETF analyst Eric Balchunas estimates that BlackRock has a 50% chance of SEC approval, while Bloomberg intelligence analyst Elliott Stein gives Grayscale a 70% chance of winning its lawsuit.
The surge in Bitcoin price is a reflection of the positive sentiment within the crypto market, driven by the prospect of ETF approval. The increased number of applications and evolving approach of companies like BlackRock and Grayscale indicate positive developments in regulatory engagement and the potential for wider crypto adoption.
