Bitcoin ETF Talks Drive Positive Sentiment as BTC Touches $29K

Bitcoin ETF Talks Drive Positive Sentiment as BTC Touches $29K

Crypto News – On Wednesday, the price of Bitcoin briefly surged to $29,000, edging closer to the significant psychological threshold of $30,000. This upturn was fueled by optimistic market sentiment attributed to discussions about a potential Bitcoin ETF, particularly among institutional investors. Bloomberg analysts have reported ongoing deliberations between spot Bitcoin ETF applicants and the US Securities and Exchange Commission (SEC) regarding necessary alterations for the approval of the Bitcoin ETF.

Engagements Between Spot Bitcoin ETF Issuers and the US SEC

James Seyffart, an ETF analyst at Bloomberg, referenced a post by lawyer Scott Johnsson on the platform X, shedding light on recent recommendations put forth by the SEC to spot Bitcoin ETF issuers. These recommendations encompass various aspects such as custodial arrangements, adherence to Generally Accepted Accounting Principles (GAAP), risk disclosures, and considerations regarding electricity consumption in the mining process.

Spot Bitcoin ETF applicants are actively engaged in discussions with the SEC, aiming to address the required modifications for the approval of spot Bitcoin ETFs within the specified deadline. Seyffart views these discussions as positive indicators of the SEC’s willingness to consider approving spot Bitcoin ETFs.

Seyffart noted, “That said, there’s likely to be more amendments over the coming weeks and months. It’s an ongoing dialogue with feedback and responses, etc. But it will certainly be interesting to see what else the SEC may want in these documents.”

Increased Odds of Spot Bitcoin ETF Approval and Recent Filing Updates by Fidelity CoinGape Media had earlier reported an increase in the likelihood of a spot Bitcoin ETF approval to 90%, as projected by Bloomberg analysts Eric Balchunas and Seyffart. This increase followed updates to the spot Bitcoin ETF prospectus by Ark Invest and 21Shares. Additionally, the approval process could accelerate if the deadline for the Grayscale lawsuit, involving the conversion of GBTC to spot Bitcoin, is reached this year.

Eric Balchunas shared information about Fidelity Investments amending its spot Bitcoin ETF filing to align with the recent recommendations made by the US SEC. Other Bitcoin ETF issuers are similarly updating their spot Bitcoin ETF applications, with expectations of further changes in the coming weeks and months.

BTC Price Movement and Institutional Buying

Over the past 24 hours, the price of BTC has surged by 2%, and over the week, it has seen a 6% increase, all attributed to the discussions surrounding the potential spot Bitcoin ETF. The price is gradually approaching the $30,000 mark amidst this positive sentiment. Notably, institutional investors have shown a significant interest in purchasing Bitcoin in the preceding week, and analysts anticipate a rise in demand in the current week.