Home Cryptocurrency Bitcoin Nearly Hits $29K Following Fidelity Amendment of Spot Bitcoin ETF Proposal

Bitcoin Nearly Hits $29K Following Fidelity Amendment of Spot Bitcoin ETF Proposal

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Bitcoin is enjoying price spikes and increased trading volumes as Fidelity and others amend proposals while the market awaits an approval.

The price of Bitcoin (BTC) hit $28,817 today in response to amendments to spot Bitcoin ETF applications submitted to the United States Securities and Exchange Commission (SEC).

However, as of this writing, Bitcoin has fallen to $28,379 according to data from CoinMarketCap, a 4.3% increase over the last 7 days. The initial increase put Bitcoin at a new two-month record and a 7% weekly gain.

Fidelity Amended its spot Bitcoin ETF Proposal

On Tuesday, asset management giant Fidelity Investments submitted an amendment to its previous application for the Wise Origin Bitcoin Trust. The amendment includes details on protecting Bitcoin in customers’ custody accounts and the disclosure of risks and uncertainties rampant in the somewhat loosely regulated crypto clime.

Last week, two other applicants amended their initial filings. While Invesco submitted one amendment on October 11, Ark Invest refiled its proposal the day after. Observers suggest that the amendments point to ongoing conversations between the SEC and the applicants. Although unconfirmed, this indicates that the SEC might be willing to help prospective ETF providers submit applications that meet the Commission’s requirements. Bloomberg Intelligence analyst James Seyffart echoed this in a response on X (formerly Twitter) to a tweet highlighting “recurring themes” in the amendments. In addition to risk disclosure and custodial arrangements, these themes include valuation and pricing sources and mechanics around hard forks.

The market is almost impatiently awaiting approval for a spot Bitcoin ETF. After a false post about the SEC approving BlackRock’s Bitcoin ETF began making the rounds on Monday, the king coin jumped to $30,000. Nonetheless, BlackRock CEO Larry Fink described the excitement and price spike as “an example of the pent-up interest in crypto.” According to him, clients worldwide are talking about their need for crypto.

The Market is Bullish on ETFs

Most predictions are bullish not only for the possibility of an SEC approval but also for the effect on the market. According to a recent report from data analytics firm CryptoQuant, an approval would make Bitcoin a $900 billion asset and also increase the overall crypto market by $1 trillion. CryptoQuant argues that financial institutions providing clients access to Bitcoin via spot ETFs would form the second wave of institutional adoption. The report states that the first wave was in 2020/2021 when institutions started acquiring the king coin.

The CryptoQuant report also states that about $155 billion would enter the Bitcoin market if the current potential spot Bitcoin ETF providers commit 1% of their Assets Under Management (AUM).

On Monday, Bitcoin hit $28,000 after news that the SEC decided not to appeal the court’s decision for Grayscale to convert its Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF. On Friday, analyst Seffart says he expects Grayscale and SEC will begin a dialogue this week.

Trading volumes for Bitcoin have increased seemingly in anticipation of an approval. According to FxPro Senior Market Analyst Alex Kuptsikevich in a note to CoinDesk, there is “continued elevated trading volumes” tied to “an influx of fresh buyers.”

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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