In an exciting turn of events, Bitcoin (BTC-USD) has seen a surge in value, briefly surpassing the $30K mark. This rally comes as cryptocurrency investors grow increasingly optimistic about the approval of a spot bitcoin exchange-traded fund (ETF).
The surge in popularity of the most popular digital token (BTC-USD) has resulted in a 3.1% increase, reaching $29.6K at 10:49 a.m. ET. If the current trend continues, Bitcoin is on track to end the week with a gain of over 10%. Additionally, Ethereum (ETH-USD), the largest altcoin by market cap, has also experienced a 3.2% boost, reaching $1.61K and is expected to record a nearly 5% weekly rise.
The possibility of a spot bitcoin (BTC-USD) ETF being approved has created a wave of excitement within the cryptocurrency community. Paul Grewal, the chief legal officer at Coinbase (COIN), expressed his optimism, stating that he is “hopeful” about the approval of a spot bitcoin ETF by the U.S. Securities and Exchange Commission. However, he did not provide a specific timeline for when this might occur, as the ultimate decision lies with the SEC.
The forecast for the approval of a bitcoin (BTC-USD) ETF is also gaining traction among industry experts. Galaxy Digital (OTCPK:BRPHF) CEO Michael Novogratz has predicted that an ETF directly investing in bitcoin will be approved as early as this year. Barclays analyst Benjamin Budish, on the other hand, believes that bitcoin ETF approvals will begin to take effect next year, with the ARK 21Shares Bitcoin Futures Strategy ETF (ARKA) being the closest to expiration.
Having a spot BTC ETF, which tracks the price of bitcoin (BTC-USD) instead of bitcoin futures, would offer direct exposure to bitcoin without the need to own the underlying token. This type of ETF is particularly suitable for those looking to invest in bitcoin.
The excitement over the potential approval of a spot ETF has also had a positive impact on crypto-linked stocks. Hut 8 Mining (HUT), Core Scientific (OTCPK:CORZQ), CleanSpark (CLSK), MicroStrategy (MSTR), and Riot Platforms (RIOT) are among the biggest gainers, having experienced significant price increases.