The price of Bitcoin could continue its way upwards as the SEC mulls spot ETF applications, leading to a new 2023 high for the king coin.
Bitcoin (BTC), the largest cryptocurrency by market cap, has hit a new high not seen in 13 months. On Thursday, Bitcoin climbed over 3% and hit $31,500, its highest point of 2023 so far. However, BTC has fallen as of press time and is trading around $31,200 on a 2.45% 24-hour increase.
The price of Bitcoin has been relatively healthy in recent times following multiple applications for spot Bitcoin ETFs. At the moment, the general sentiment is that the United States Securities and Exchange Commission (SEC) could approve an application this year. Many believe that the application for iShare Bitcoin Trust ETF by BlackRock (NYSE: BLK) would likely cinch the regulator’s approval.
Rachel Lin, the CEO of decentralized derivatives protocol SynFutures, is optimistic about Bitcoin’s chance of upward movement. Highlighting the king coin’s resilience in the $30,000 to $31,000 support range, Lin said:
“Bitcoin’s current trend indicates an encouraging uptrend phase, now trading at the $31,000 resistance level. Price projections for Bitcoin point towards an upward trajectory if the price can remain above the current level, potentially breaching the immediate $32,400 resistance.”
However, Lin adds that a correction all the way to $27,500 could happen if BTC falls below $29,500.
Bitcoin’s New 2023 High Spurred by ETF Hopefuls
The SEC has received a few spot Bitcoin ETF applications over the last few weeks. So far, WisdomTree, Invesco, Fidelity Investments, ARK Invest, Valkyrie, Bitwise, and BlackRock have all submitted filings. While the application is BlackRock’s first, others like ARK Invest, WisdomTree, Grayscale Investments, and Vaneck have had their applications previously rejected.
To date, the SEC has rejected all spot Bitcoin ETF applications ever submitted since Gemini founders Tyler and Cameron Winklevoss submitted the first one in 2013. The SEC turns down these applications each time, stating that they contain inadequate measures to prevent market manipulation and fraud. These rejections are now the basis of a lawsuit between Grayscale and the SEC after the Commission rejected its application. Grayscale CEO Michael Sonnenshein said he “vehemently disagrees” with the rejection.
Bitcoin’s new 2023 high and projected uptrend stems from the increase in spot ETF applications and the sentiment suggesting an approval, likely for BlackRock. Recently, Bloomberg senior ETF analyst Eric Balchunas gave BlackRock a 50% chance of approval for a few reasons, including Grayscale’s chance of a win. Bloomberg’s Intelligence analyst Elliott Stein had estimated that Grayscale has a 70% chance of winning its lawsuit against the SEC after an oral argument in court that won judges to Grayscale’s side.
Another reason for BlackRock’s possible win is an amendment of its iShares application. The asset management giant recently added a surveillance-sharing agreement (SSA) to address the SEC’s market manipulation concerns. The agreement will involve other players and require information sharing for transparency and fraud prevention. Not long after, the Cboe BZX Exchange imitated BlackRock and also amended its ARK 21Shares to include an SSA.
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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Tolu Ajiboye
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