Bitcoin (BTC) experienced a significant surge this week, driven by rising optimism regarding the potential approval of multiple spot bitcoin exchange-traded funds (ETFs), as stated in a research report by JPMorgan (JPM) released on Wednesday.
The positive trading momentum of Bitcoin has persisted throughout the week, resulting in a noteworthy 5% gain in the last 24 hours alone, bringing its value tantalizingly close to the $30,000 mark. This surge in value has also led to a substantial $30 billion increase in Bitcoin’s market capitalisation↗︎.
According to the report, the decision by the Securities and Exchange Commission (SEC) not to appeal a recent ruling in the Grayscale case has brought the approval of ETF applications a step closer. Grayscale, the manager of the Grayscale Bitcoin Trust (GBTC), the world’s largest cryptocurrency fund, stands at the forefront of this potential breakthrough.
ETFs, which are traded on exchanges like stocks and track the performance of an underlying asset, are gaining popularity because they offer investors access to cryptocurrencies without the need to directly purchase the digital asset. Furthermore, they are cost-effective, making them an attractive option for investors. The cryptocurrency market is abuzz with anticipation, believing that the approval of a spot bitcoin ETF could usher in a wave of mainstream investments into the sector.
JPMorgan reasserted its belief that regulatory authorities were likely to approve multiple applications simultaneously rather than granting a “first mover advantage” to any single applicant. Such a move, the report noted, could foster healthy competition among ETF providers, potentially resulting in lower fees for investors.
The report also highlighted that if Grayscale’s trust receives approval to be converted into an ETF, there could be increased pressure on the organization to reduce fees, a development that could prove beneficial for investors.
Earlier in the week, a brief surge in Bitcoin’s price above $30,000 was triggered by a false report suggesting ETF approval. However, the price fell back to $28,000 once the misinformation was corrected.
