Bitcoin (BTC) Price Heads to $55,000 On Strong Rumors of the SEC Approving Bitcoin ETF
Bitcoin has been shifting gears pretty fast since the beginning of this month. On Wednesday, October 6, the BTC price moved past $55,000 levels gaining more than 20% in the first six days of October.
The recent Bitcoin price rally comes as rumors of the U.S. Securities and Exchange Commission (SEC) approving a Bitcoin ETF this month gain strong traction. A Bitcoin exchange-traded-fund has been long awaited in the U.S. market and now the institutional demand for this derivative product is rising very sharply.
A Bitcoin ETF is basically an investment vehicle shares of which allow investors to seek exposure to a digital asset in a regulated environment without having to deal directly with the digital asset.
More than 30 Bitcoin ETF applications have been waiting at the SEC’s doorstep for the approval. SEC Chairman Gary Gensler, however, has been holding a tough stand on crypto. However, Gensler has been suggesting the possibility of the SEC approving a Bitcoin ETF provided it follows the Bitcoin futures offered by the CME Group.
Any approval by the U.S. SEC will see a flood of institutional money coming into Bitcoin (BTC). This can easily take the Bitcoin price skyrocketing further beyond is current all-time high.
As said, the U.S. SEC is having multiple applications of Bitcoin ETF at its door. Some of the ETF experts in the market believe that the first Bitcoin ETF approval will likely happen by October 18. Currently, the ProShares Bitcoin Strategy ETF has been scheduled for the given deadline.
Bloomberg senior ETF analysts, Eric Balchunas suggested a 75% of the possibility for the approval of a Bitcoin futures ETF. He wrote: “The SEC has kicked can on bitcoin ETF approval BUT that is for the physically-backed ones under '33 Act. The futures ETFs filed under the '40 Act (which Genz loves) are very much alive and likely on schedule (we think 75% chance approved in Oct)”.
Furthermore, the fourth quarter has always remained bullish for Bitcoin. Many analysts are expecting that the bitcoin price will touch $100K by the end of the year. It means that Bitcoin investors are staring at nearly 1005 gains from the current levels.
Also, Bitcoin whales have resolved to strong accumulation recently. Bitcoin whale traders holding between 100 to 10,000 $BTC accumulated 70k $BTC 10 days ago, the largest day of accumulation for this group since July, 2019. Unsurprisingly, prices gradually returned to above $51k as whales show no sign of a dump yet”.