The bitcoin price rallied shortly after the BTC ETF application was spotted by WisdomTree and Invesco on Tuesday. Bitcoin increases its market dominance to 50% of the overall crypto market.
In the last 24 hours, the world’s largest crypto currency bitcoin (B T c) has seen an astonishing 8% increase in its price which is moving closer to the level of $29,000. As of press time, BTC is trading at $28,884 with a market cap of $560 billion. The most recent catalyst for BTC price growth has been a flurry of applications for spot bitcoin ETFs over the past week.
Bitcoin ETF Applications and Their Impact on BTC Price
On Monday, two asset managers, WisdomTree and Invesco, filed with the US SEC for a spot bitcoin ETF. The filing comes less than a week after financial behemoth BlackRock filed for a spot bitcoin ETF. Another catalyst for the bitcoin price rally was crypto exchange EDX Markets, which is backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp, announcing the resumption of operations.
A Tuesday filing from WisdomTree said Coby will be listed on the BZX exchange under the WisdomTree Bitcoin Trust ticker BTCW. On the same day, $1.5 trillion asset manager Invesco also filed for the Spot Bitcoin ETF. This is the second time both players have submitted their bitcoin ETF applications. seconds, Back in 2021, Invesco applied for a futures-based bitcoin ETF, but withdrew the application at the last minute.
The SEC has been reluctant to approve bitcoin ETFs, including previous attempts by WisdomTree. The regulator has expressed concern about risks such as fraud and manipulation in the spot market for bitcoin. However, it has allowed bitcoin ETFs based on futures contracts. Hayden Hughes, co-founder of social-trading platform Alpha Impact, speaking to Bloomberg Said,
“Rally is supported by institutional demand. BlackRock’s announcement on a bitcoin ETF, plus EDX Markets, boosted bitcoin on hopes that traditional institutions will add depth to the crypto market.
SEC Constraints
As noted, the SEC has rejected several applications for spot bitcoin ETFs over the years. However, with the world’s top financial giants putting their weight behind it, things might be a little different this time around.
soon afterward black Rock The filing sparked renewed optimism among bitcoin investors. Interestingly, Grayscale Bitcoin Trust’s share price also increased by 25% following the BlackRock filing. Grayscale Bitcoin Trust (ticker GBTC), valued at $16.9 billion, has outperformed the real cryptocurrency in the days since the world’s largest ETF issuer submitted its iShares Bitcoin Trust application. As a result, the discount to underlying bitcoin holdings of GBTC has dropped to around 37%, compared to the 44% discount seen a week ago.
Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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