Bitcoin, the leading cryptocurrency, is showing resilience as it nears a recovery from a recent 10% decline. It is on the verge of challenging the 21-month peak established earlier this month. On Monday morning, Bitcoin experienced a surge of approximately 3%, reaching a brief high of $45,235, which is roughly 1.5% below the local highs recorded on January 2. Since then, Bitcoin has experienced a minor pullback.
In the meantime, companies hoping to launch spot exchange-traded Funds (ETFs) are submitting their final documents in anticipation of the Securities and Exchange Commission’s (SEC) upcoming approval deadlines. BlackRock, Grayscale, VanEck, and other firms have revealed the management fees for their proposed ETFs. It is anticipated that investors will gravitate towards the products with the lowest fees.
Analysts are confident that the SEC will greenlight these funds, which are required to hold actual Bitcoin on behalf of their shareholders. This would mark the debut of such products in the United States. Currently, three spot Bitcoin ETFs are trading in Canada, with the largest one managing about $1.5 billion in Bitcoin for its shareholders.
Over the past six months, Bitcoin has appreciated by approximately 50%, and it has seen a growth of more than 160% over the past year.
Bitcoin Futures Open Interest Are Also Riding the ETF Approval Wave
The approval, which arrives at the start of a year anticipated to be favorable for bullish investors, might propel the price of Bitcoin beyond $50k soon. Current forecasts for this cycle suggest that Bitcoin has the potential to reach or even exceed $100k.
Meanwhile, according to the latest data from CoinGlass, Bitcoin futures open interest is currently at 407,400 BTC, marking an increase of over 8,000 BTC within a single day. This significant rise has led financial analyst Tedtalksmacro to speculate on the possibility of an early decision on exchange-traded Funds (ETFs).
— CoinGlass (@coinglass_com) January 8, 2024
CoinGlass has also highlighted an immediate increase in ask liquidity above the spot price, indicating potential market behavior in the event of a rapid upward shift. Despite growing optimism about the launch of ETFs, prominent figures within the Bitcoin community continue to express caution.