Bitcoin surged nearly 15% since Monday amid speculation that proposed BlackRock’s exchange-traded fund (ETF) for bitcoin could be nearing Securities and Exchange Commission regulatory approval. The often-volatile cryptocurrency Bitcoin surge was seen and it was just shy of $35,000 on Monday night. The Bitcoin price has hovered around $34,000 for the last two days, reaching its highest price in nearly a year and a half.
Bitcoin surge on speculation
If the Securities and Exchange Commission (SEC) were to approve Blackrock bitcoin Exchange-Traded Fund, it would be the first time that crypto is directly tradable on the traditional stock market.
While the SEC has previously approved ETFs based on crypto futures, it has yet to approve any crypto-based spot ETFs, which would invest directly in crypto assets.
As per the securities clearinghouse, the proposed spot bitcoin ETF had been added to the list in August as “standard practice” and was “not indicative of an outcome for any outstanding regulatory or other approval processes.”
BlackRock’s Bitcoin Trust
The bitcoin rally comes after traders noticed that BlackRock’s iShares Bitcoin Trust had appeared on an eligibility list controlled by the Depository Trust and Clearing Corporation (DTCC).
BlackRock Inc. pushed ahead with efforts to launch its proposed spot bitcoin ETF, including giving it a ticker symbol and creating a mechanism to capitalize the fund.
Crypto exchange-traded funds surged on the news, and bitcoin price jumped to its highest since May, 2022.
BlackRock’s proposed spot bitcoin ETF was added to the Depository Trust and Clearing Corp., or DTCC, which clears and settles trades in U.S. markets, and given an identifying number known as a CUSIP. It was also branded with a ticker: IBTC.
Approving a spot bitcoin fund
Bitcoin price along with futures ETFs surged on expectations the Securities and Exchange Commission is in the final stages before approving a spot bitcoin fund. The $908 million ProShares Bitcoin Strategy ETF (BITO) was 7.3% higher in midday trading while the VanEck Bitcoin Strategy ETF (XBTF) gained 6.9%.
“It remains a matter of when, not a matter of if,” Grayscale CEO Michael Sonnenshein said of the spot bitcoin approval process at an Oct 23 event.
BlackRock’s amended filing includes the seeding mechanism to fund the ETF.
Grayscale Investment victory
Crypto-focused investment firm Grayscale Investment also saw a spot bitcoin victory yesterday. The D.C. Circuit Court of appeals officially implemented its unanimous ruling favoring Grayscale Investments over the SEC’s objections to converting the Grayscale Bitcoin Trust into an ETF.
“The SEC has been actively engaging with all S-1 filing applicants, signaling a positive move towards application effectiveness,” said CoinShares Head of Research James Butterfill in a statement. “Several issuers are in the final stages of their applications.”
Securities and Exchange Commission approvals
While various firms have been vying for a spot bitcoin ETF for years, the Securities and Exchange Commission has only recently begun to meaningfully move the approval process along. For crypto investor hopefuls, the prospect of a way to invest in the currency through an ETF has never looked more likely.
Bitcoin price movements have been sensitive to news about the spot ETF approval process. After a false report spread on Twitter Oct 16 that the iShares ETF was approved, the price of Bitcoin surge was about 10% before coming back down once BlackRock confirmed the report was false.
