By Bitcoin reached a significant milestone on Thursday, surging to its highest level since May 2022 at $37,960. This remarkable rise was driven by increasing optimism surrounding the potential approval of an exchange-traded fund (ETF) dedicated to investing directly in the popular cryptocurrency.
According to data from CoinDesk, the largest cryptocurrency, BTCUSD, witnessed a 6.5% climb in the past 24 hours, reaching approximately $37,502. Analyst James Harte from Tickmill Group suggests that Bitcoin is now targeting $39,860 as its next resistance level, based on technical analysis.
Bloomberg Intelligence analysts James Seyffart and Eric Balchunas shed light on an eight-day timeframe that commences today. During this period, the Securities and Exchange Commission (SEC) could potentially issue approval orders for the pending spot bitcoin ETF applications. Presently, there are 12 such applications awaiting consideration by the SEC.
Despite the possibility of approvals not being granted this month, Seyffart and Balchunas confidently project a 90% likelihood of approval by January 10th for an application submitted by ARK Invest and 21 Shares, according to their note.
Historically, the SEC has rejected spot bitcoin ETFs due to concerns over market manipulation. However, hopes for a breakthrough have been reignited after Grayscale Investments secured a recent court victory. This development has sparked renewed optimism that bitcoin ETFs may soon become available in the market.
James Harte emphasizes the bullish sentiment in the crypto sector and believes it will continue until the end of the year. He opines that any SEC approvals will trigger a surge in demand not only for bitcoin but also across the entire cryptocurrency sector.
The potential approval of a bitcoin ETF marks a significant milestone for BTC, as it signifies its entrance into the mainstream. Furthermore, it is expected to generate substantial institutional demand, bringing bitcoin further into the spotlight as a legitimate investment asset.
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