The chances that the SEC ends up approving a spot Bitcoin ETF generates notable growth in flows into the crypto sector.
The time of hopelessness among applicants for an exchange-traded fund of the largest cryptocurrency seems to end. The high possibility of the SEC approving a Bitcoin ETF triggers capital inflows into the crypto market from several directions.
The bullish potential of the pioneering cryptocurrency is once again brought to the fore. In that sense, after months of low volatility, the price of BTC is once again above the barrier of $30,000 per coin.
According to a recent report from Coinshares, week-over-week income from the crypto sector rose by more than 340% until October 23. In this sense, the mood of investors indicates that there is strong confidence that the approval of the stock market product is very close.
The report highlights that more than 80% of income is related to assets linked to Bitcoin. For its part, the second most important currency in capitalization, ETH, is in trouble. The text states that it was the only one in the top that presented withdrawals greater than income.
The Race for the First Bitcoin Spot ETF Continues in the United States
Grayscale filed a new registration statement on Thursday the 19th via an S-3 filing. A shortened version of the typical S-1 filing used to offer new stock.
Previously, Grayscale demonstrated that its proposed Bitcoin ETF was similar to already approved Bitcoin futures ETFs. As a consequence, according to the Court, they should have the same probability of detecting fraudulent or manipulative conduct in the Bitcoin and Bitcoin futures market.
BlackRock and Fidelity, by the way, are seeking SEC approval for Bitcoin spot ETFs. In fact, SEC Chairman Gary Gensler said Wednesday that “agency staff are working on those multiple filings.” In itself, referring to the existing proposals it received.
The US Court ruling is progress towards the approval of Bitcoin ETFs, which would facilitate the integration of cryptocurrencies into banking transactions. In fact, one might think that Bitcoin (BTC) reacted upwards after the news, trading above $33,000.
All Hope in a Bitcoin Spot ETF
Entry into the crypto sector skyrockets due to the chances of approval of a spot Bitcoin ETF. And it’s not just about income through exchanges or other digital asset trading platforms.
At the same time, high dynamics are also noted in over-the-counter (OTC) desktop wallets. These are the popular over-the-counter desk wallets. With them, market participants can exchange digital currencies across exchanges.
In the latter case, the Glassnode portal confirms that there is a notable increase in OTC income towards the cryptocurrency area. On the other hand, it should be taken into consideration that the Purpose Bitcoin ETF, with an approximate holding of 25,000 BTC, also presents a strong inflow during the last month.
The entrances of the latter cannot be considered large. Despite this, the proportional growth it experiences should not be overlooked.
Regarding entry through trading platforms, the rise of optimism is clearly noticeable. Consequently, it can be said that the general outlook towards the cryptocurrency market seems to be in one of the best moments of 2023.
The aforementioned report emphasizes that positive income for the crypto market reaches the fourth consecutive week. Regarding crypto assets under management (AuM), they are experiencing growth of more than 15% and are at the best point since mid-August.
By Audy Castaneda
