October 17, 2023
NEW DELHI – Bitcoin jumped some 4.5% in morning hours of Monday amid hopes that a bitcoin exchange-traded fund (ETF) could get approved in the coming months.
The jump seemed to be a continuation of Friday’s reaction to the US Securities and Exchange Commission (SEC) decision to not appeal to a recent Grayscale ruling. It traded just under $28,000, reversing all losses over the past week.
The spike follows Sunday’s slight increase in Bitcoin’s price by 0.10% to $26,900. After the SEC’s approval of Grayscale’s bitcoin ETF, announced on Friday night, the cryptocurrency community looked excited.
In a significant ruling by a three-judge panel of the Washington DC court of appeals, a new chapter for the cryptocurrency sector is expected to unlock substantial value for investors.
According to the latest data, a trade volume of $4.8 billion and 19,514,125 bitcoin tokens are in circulation. This is very near to the set limit of 21 million tokens.
Bitcoin is poised to retest the $30,000-mark, reinforcing its position as a refuge for investors against inflation and market upheaval.
Earlier this year, the crypto asset manager scored a legal victory in federal court in its bid to turn its Grayscale Bitcoin Trust into the first US ETF that would invest directly in the largest digital coin.
The SEC faced a Friday deadline to appeal the ruling.
“What’s likely to occur is that dialog between Grayscale and the SEC is going to open up,” according to James Seyffart, an analyst at Bloomberg Intelligence.
Grayscale has argued that a conversion of GBTC into an ETF could unlock billions in value for its holders.
It is to be noted that like any other asset, the price of bitcoin is largely determined by the demand and sale matrix.
When demand for bitcoin increases, but the supply remains fixed, the price will invariably rise. Conversely, if supply increases or if demand drops, the price will drop.