Bitcoin (BTC) experienced a substantial 4.5% surge during the early hours of the Asian trading session on Monday, driven by growing optimism surrounding the potential approval of a bitcoin exchange-traded fund (ETF) in the coming months. This surge has ignited bullish sentiment in the cryptocurrency market.
The price of Bitcoin reached just shy of $28,000, effectively erasing all the losses it had incurred over the past week. This notable uptick appears to be a direct continuation of the positive market reaction observed on Friday following the U.S. Securities and Exchange Commission’s (SEC) decision not to contest a recent ruling related to Grayscale.
According to a reliable source, the SEC has opted not to challenge a court ruling that would allow Grayscale to convert its widely popular bitcoin trust into a more investor-friendly exchange-traded fund. This development potentially paves the way for the very first bitcoin ETF to be introduced in the United States.
Market observers have noted that this decision by the SEC enhances the likelihood of the Grayscale Bitcoin Trust (GBTC) undergoing a transformation into a more attractive ETF, a point of view shared by several traders.
Simon Peters, a market analyst at eToro, remarked on the significance of the news concerning Grayscale’s ETF application in the United States, stating, “The developments related to Grayscale’s ETF application in the U.S. could have profound implications for the bitcoin market. The prospect of spot price ETF approval has been a prevailing narrative in the bitcoin market for several months now.”
