Cryptocurrencies experienced a brief surge at the start of the week, with hopeful investors considering the possibility of a bitcoin exchange-traded fund (ETF) being approved in the United States. Speculation about the approval of the iShares spot bitcoin ETF led to a sudden spike in the price of bitcoin, surpassing $30,000. However, the gains were short-lived as the report could not be confirmed by major media outlets. The Securities and Exchange Commission (SEC) had not issued any directives regarding bitcoin on its website at the time.
Despite the temporary excitement, bitcoin rose only about 4% to $28,193.00, according to Coin Metrics, while ether saw a modest increase of over 1% to trade at $1,585.68. The previous week, bitcoin had also experienced a jump in price following the news that the SEC would not appeal a ruling in Grayscale’s lawsuit against regulators. Grayscale had sued the SEC over the denial of its application to convert the popular Grayscale Bitcoin Trust (GBTC) to an ETF. This news led many investors to believe that the SEC might be closer to allowing the listing of GBTC shares.
Regulatory uncertainty in the US crypto industry has caused a lack of enthusiasm among investors, resulting in low trading volume and liquidity. As a result, bitcoin has been unable to reach new highs above $30,000. However, the optimism surrounding the possibility of a bitcoin ETF approval buoyed other cryptocurrencies as well. Ripple’s XRP, Binance Coin, Solana’s sol token, and Cardano’s ada token all experienced gains.
Crypto equities, which have also struggled recently, outperformed crypto assets on Monday. Coinbase, a leading cryptocurrency exchange, saw an increase of over 2% in early trading. Mining stocks, including Riot Platforms and Marathon Digital, received a boost of about 5%.
It is worth noting that bitcoin is coming off its worst week since August 18, with a 4.35% loss, while ether lost 6.36% for the same week. Despite the recent volatility, some investors, such as Paul Tudor Jones, consider bitcoin to be a safe haven asset in an uncertain macroeconomy.
Overall, the approval of a bitcoin ETF in the US remains uncertain, but the recent developments and lack of SEC appeals have given hope to investors. The crypto market continues to grapple with regulatory challenges, but some see potential opportunities for growth and increased adoption in the future.