Last week proved to be a good one for the world’s largest cryptocurrency by market capitalization, as Bitcoin’s value surged over the $30,000 mark during early trading on Friday, October 20th.
Bitcoin’s weekly gains also went above 11%, mostly due to a bull run driven by news regarding the possible approval of a spot bitcoin exchange-traded fund (ETF) in the United States.
Prior to this development, a number of ETF providers made revisions to their respective filings, an occurrence that put additional pressure on the country’s Securities and Exchange Commission (SEC) to take on a less rigid stance on the approval of Bitcoin ETFs.
The crypto sector also found support from an unlikely place: the US House Financial Services Committee. Four members of the congressional committee penned a letter to SEC head Gary Gensler, urging him and the agency to pay heed to the court ruling and put an end to initiatives meant to stop the regulatory approval of bitcoin ETFs.
A Potential Conversion Sparks Hope
Meanwhile, a sizeable number of traders are keeping an eye on the Grayscale Bitcoin Trust (GBTC)’s potential transformation into an ETF. Their excitement is understandable, given how GBTC is currently one of the larger Bitcoin holdings on an institutional scale. Grayscale, the firm behind the trust, is also known to be one of a number of digital asset management companies that have applied for a spot bitcoin ETF, joining the ranks of BlackRock, Fidelity, as well as Wisdom Tree.
According to several traders, moving in favor of Grayscale could drive a bigger bull run and set the stage for an even greater value jump in the market. In a message released on October 20th, Metalpha senior trader Lucy Hu remarked that, at present, Bitcoin is being driven by optimism regarding a potential ETF approval, along with a greater number of major firms submitting their respective ETFs.
Hu added that, as the SEC has chosen to go with a no-appeal regarding the Grayscale application and the deadline for bitcoin spot ETF applications draws nearer, overall market confidence in ETF approvals has significantly improved and this could set the pace for a strong bull market moving forward.