Why Bitcoin Surged Past $31K as Spot BTC ETF Issuers Re-apply

Bitcoin Surges Past $31K as Spot BTC ETF Issuers Re-apply

Bitcoin made a remarkable resurgence on Tuesday, briefly crossing$31,000 after several prospective bitcoin exchange-traded fund (ETF) issuers resubmitted their applications to the U.S. Securities and Exchange Commission (SEC). 

As the world’s largest digital asset, bitcoin’s rally has triggered similar price action in bitcoin-adjacent stocks. With the SEC potentially poised to approve a spot Bitcoin ETF, traditional investors may find it easier to embrace the cryptocurrency. Could this be the breakthrough moment bitcoin has been waiting for?

ETF refilings propel Bitcoin past $31K

Bitcoin started the week strong, surpassing the $31,000 milestone after several Bitcoin ETF issuers resubmitted their applications. The SEC rejected the previous applications due to inadequate disclosure of surveillance-sharing agreements. Notably, Cboe’s BZX Exchange refiled its applications, now identifying Coinbase as its surveillance-sharing partner. This development injected optimism into the market, causing the price of bitcoin to surge by 2% within a day.

Coinbase, the chosen market for surveillance-sharing agreements in the refiled ETF applications, also witnessed an uptick in its stock price. Shares in the crypto exchange soared by over 10% to more than $80, underscoring the market’s enthusiasm for the potential approval of a spot Bitcoin ETF. 

Additionally, bitcoin-adjacent stocks experienced a similar rally. Microstrategy, a business intelligence firm holding a substantial amount of bitcoin, saw its shares rise by 10% to reach its highest level in over a year.

SEC’s green light on the horizon?

Industry experts and analysts are now cautiously optimistic about the SEC’s potential approval of a spot Bitcoin ETF. Bernstein, a brokerage firm, released a report suggesting that the agency may be ready to greenlight an ETF in the near future. While the SEC has never approved a spot Bitcoin ETF, other countries, including Brazil, Dubai, and Canada, have already paved the way. If the SEC followed suit, it could simplify bitcoin adoption for traditional investors with stock accounts.

Approving a spot Bitcoin ETF would be a significant development for the cryptocurrency market. It could catalyze widespread adoption by traditional investors, providing them with an avenue to invest in bitcoin through familiar and regulated channels. With simplified access to bitcoin, the digital asset’s value could skyrocket as institutional and retail investors take advantage of the opportunity.

Bitcoin price analysis

Why Bitcoin Surged Past $31K as Spot BTC ETF Issuers Re-apply

BTC/USD Price Chart, Source: Coinmarketcap

The price of Bitcoin today stands at $30,742.18. According to Coinmarketcap data, bitcoin maintains its top position on CoinMarketCap’s ranking. The cryptocurrency’s circulating supply amounts to 19,419,550 BTC coins, nearing its maximum supply of 21,000,000 BTC coins.

Disclaimer: The information provided in this article is for informational purposes only. It should not be considered as financial or investment advice. The cryptocurrency market is highly volatile and unpredictable, and investors should conduct their research and exercise caution before making any investment decisions.

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