Bitcoin price rose shortly after WisdomTree and Invesco made spot BTC ETF applications on Tuesday. Bitcoin has expanded its market power to 50% of the total cryptocurrency market.

Over the past 24 hours, the price of Bitcoin (BTC), the world’s largest cryptocurrency, surged an astounding 8%, approaching $29,000 levels. At the time of writing, BTC is trading at $28,884 and has a market cap of $560 billion. The recent surge in BTC prices was triggered by a flood of applications for spot bitcoin ETFs over the past week.

Bitcoin ETF Application and Impact on BTC Price

On Monday, two asset managers, WisdomTree and Invesco, filed for spot Bitcoin ETFs with the U.S. Securities and Exchange Commission (SEC). These applications came less than a week after financial giant BlackRock filed for a Spot Bitcoin ETF. Another trigger for the Bitcoin price rally was the announcement of the EDX market, a cryptocurrency exchange backed by companies such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab, to begin operations.

WisdomTree Bitcoin Trust will be listed on the Cboe BZX exchange under the ticker BTCW, according to Tuesday’s filing from WisdomTree. On the same day, $1.5 trillion asset manager Invesco also applied for a spot Bitcoin ETF. This is the second time both players have filed a Bitcoin ETF application with the SEC. Back in 2021, Invesco had applied for a futures-based Bitcoin ETF, but withdrew the application at the last minute.

The SEC has been reluctant to approve Bitcoin ETFs, including previous attempts by WisdomTree. Regulators have expressed concern about risks such as fraud and manipulation in the bitcoin spot market. However, Bitcoin ETFs based on futures contracts are allowed. Hayden Hughes, co-founder of social trading platform Alpha Impact, told Bloomberg. Said:

“The rally is fueled by institutional demand. BlackRock’s announcement on the Bitcoin ETF and EDX market has boosted Bitcoin expectations that traditional financial institutions will add depth to the cryptocurrency market. ”

SEC Hurdle

As previously mentioned, the SEC has rejected several applications for spot Bitcoin ETFs over the past few years. But things could be a little different this time around, as the world’s top financial giants are pushing this hard.

Shortly after the BlackRock filing, there is renewed optimism among Bitcoin investors. Interestingly, after BlackRock’s filing, Grayscale Bitcoin Trust’s share price also rose a staggering 25%. Days after the filing of the iShares Bitcoin Trust application by the world’s largest ETF issuer, the $16.9 billion Grayscale Bitcoin Trust (ticker GBTC) outperformed real cryptocurrencies. showed performance. As a result, the discount on GBTC’s underlying bitcoin holdings has dropped to around 37% compared to the 44% discount observed a week ago.

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Bhushan Accorcar

Bhushan is a fintech enthusiast and has a great knack for understanding financial markets. His interests in economics and finance have drawn attention to the emerging blockchain technology and cryptocurrency market. He continues his learning process continuously and keeps himself motivated by sharing his knowledge. In his free time, he enjoys reading thriller novels and occasionally testing his cooking skills.

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