By Shelly Melancon (Switzerland)
There has been increasing speculation that the US Securities and Exchange Commission (SEC) could approve a Bitcoin future exchange-traded product in a few weeks time. These speculations could have contributed to the rise in Bitcoin price as Bitcoin price rises by over 7% within the last 24 hours. This continues the trend in the rise in price of Bitcoin, as the crypto surged by over 32% over the last seven days.
SEC Expected To Approve Bitcoin ETF Soon
This surge in the price of Bitcoin may be due to excitement in the anticipation of the approval by the SEC of Bitcoin futures ETF. This could have led to front running by institutional investors in anticipation of the approval, hence the surge in price. Eric Balchunas, a senior analyst at Bloomberg, estimates that there is a 75% chance of approval by the SEC within this month, and he is very excited about the possible approval.
A lot of institutional investors are quite confident and expectant about the approval of Bitcoin exchange-traded products and the possibilities the approval indicates. However, there are some that are more conservative in their expectations of a Bitcoin ETF in comparison to a physically backed ETF. Regardless of whether the impact of the approval is massive or modest, this is seen as the right step in the right direction.
Also read:Based on remarks by Gary Gensler, SEC Chair, it can be expected that futures products will get the first approval, which will provide institutional investors with the opportunity to bet on Bitcoin’s future without actually holding any. Also, there is skepticism about early approval of a physically backed ETF while it may be approved in the future, probably months or years.
Alex Krüger, cryptocurrency analyst, believes that the Bitcoin ETF has become the dominant narrative in the crypto market right now, hence it is driving a surge in the price of Bitcoin even though it is unclear if Bitcoin ETF will be approved by SEC as speculated.
Mathew Dibb, COO of Stack Funds, was also of the opinion that the driver of the surge in Bitcoin price is the speculations regarding Bitcoin ETF. Although, he also added another possible contributor which is the approval of Proshares ETF being anticipated on October 18.
Whales Are Buying More Bitcoin
The major contributor to the rise in price of Bitcoin has been the whales, as it was noted by Ki Young Ju, that about $1.6 billion in Bitcoin orders was made within a few minutes yesterday. Hence, it can be said that the whales are buying Bitcoin at an alarming rate which is driving the price of Bitcoin higher.
Several predictions regarding the approval of Bitcoin ETF have been made in the past. Mike McGlone was one, as he predicted that the SEC would approve Bitcoin ETF by the end of October, and this prediction is looking even more probable with time. He recently also speculated that the price resistance of BTC might flip during the fourth quarter, whether this will happen as predicted is yet to be known.
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