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The stock price crossed the $38,000 threshold for the first time in 17 months, recording a significant 5% gain over the past week. The cryptocurrency’s rally comes amid expectations that the U.S. Securities and Exchange Commission (SEC) will soon approve an exchange-traded fund (ETF) for bitcoin, a long-awaited step by cryptocurrency enthusiasts.
Despite recent setbacks, such as the SEC’s postponement of decisions on Hashdex and Grayscale’s ETF applications, bitcoin’s value has demonstrated resilience. These delays have not dampened market optimism, as evidenced by the continued upward trajectory of bitcoin’s price.
Investors are also closely following Franklin Templeton’s request to create a Bitcoin ETF, which is due today. As this move looms, more applications for spot ETFs are planned for January 2024. Bloomberg Intelligence analysts have predicted that approval for these spot ETFs could come as early as the first week of January 2024, which could facilitate exposure to bitcoin for institutional investors and individuals.
The potential for increased institutional demand is an important factor in bitcoin’s bullish outlook. The approval of spot BTC ETFs is expected to simplify the process for investors to add bitcoin to their portfolios, which could lead to further price increases due to increased demand.
Adding to this positive sentiment is data from BTCDirect, which indicates that much of the bitcoin supply remains unchanged. Specifically, 69% of total supply saw no movement over the past year, which contributed to a decrease in circulation volume and selling pressure. This static supply is recognized as key support for the recent bitcoin price appreciation.
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