Crypto on the Edge: Bitcoin’s $25K Battle and Ethereum’s ETF Ascent
The crypto market led by Bitcoin (BTC) and Ethereum (ETH) has reacted to news of the first Ethereum spot ETF.
The last quarter of the year could see the approval of a Bitcoin spot ETF and an Ethereum futures ETF.
Following news of an Ethereum spot ETF filing, the crypto market has enjoyed positive sentiments. After weeks of relative calm in the market, there was a dramatic jump following the exciting news. Market leader Bitcoin jumped by 2 percent on the hour to climb above $25,900 after news of another crypto spot ETF broke.
Ethereum (ETH) which would be directly impacted, followed in the same pattern, jumping to nearly $1,700 shortly after the announcement. However, the gains were quickly wiped out but both coins have found support above key levels. Bitcoin on its part is still trading above $25,500 while Ethereum is trading above the $1,500 support level.
Bitcoin and Crypto Market Set for Blockbuster End of Year
The ETF frenzy is set to continue for the rest of the year with key decisions to be made in the coming months. One of these is the approval of the first Ethereum futures ETF in the U.S. The Securities and Exchange Commission (SEC) will make a decision on this in mid-October with a majority of experts expecting approval.
When the SEC approved a Bitcoin futures ETF, the largest cryptocurrency by market cap recorded a 60 percent surge following this announcement. Experts believe that Ethereum (ETH) will after the approval outperform Bitcoin and could trigger a new bull market.
As reported by CNF, Grayscale has asked the SEC to meet and forge the way forward in regards to turning its GrayScale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. With many speculating that the SEC is likely to approve multiple ETF filings simultaneously, others such as the BlackRock filing will be approved before the end of the year. This will see an influx of institutional investors, driving demand for the digital asset and pushing BTC to new all-time highs.
Bloomberg’s Senior ETF Analyst, Eric Balchunas, projects that BlackRock’s Spot Bitcoin ETF could potentially unleash a monumental $30 trillion from financial advisors into the crypto market.
A new accounting rule has also been welcomed by the community. The Financial Accounting Standards Board (FASB) has approved public and private companies with crypto on their balance sheets to use fair-value accounting when reporting holdings. Current rules have companies reporting crypto holding at the lowest value they hit during a quarter. This has been viewed by market leaders such as MicroStrategy’s Michael Saylor as a deterrent for corporate adoption.
Coupled together, these developments set the stage for a blockbuster ending to the year. One or all of these events could trigger the next true bull market ahead of the upcoming 2024 Bitcoin halving.
Filed under: Bitcoin - @ September 7, 2023 6:02 pm