Bitcoin reclaimed the $45,000 price point on Monday after hopeful spot Bitcoin exchange-traded fund (ETF) issuers submitted their final S-1 forms to the U.S. Securities and Exchange Commission (SEC), indicating that approval for the eagerly awaited crypto investment vehicle could be well underway.
At around 1:15 p.m. ET on Monday, Bitcoin broke through the $45,000 price level and traded at $45,161.14, representing a nearly 3% gain for the day, based on data from CoinMarketCap.
The world's oldest crypto asset appeared to regain momentum this week, trading beyond the $45,000 price point for the first time in 21 months last Tuesday. However, it then lost its gains and settled between the $43,000 and $44,000 price levels later in the week.
The buzz surrounding spot Bitcoin ETF gained traction again on Monday after hopeful issuers submitted their final S-1 forms with the SEC, revealing their planned fees for the crypto investment vehicle once approved.
Additionally, New York-based asset management giant BlackRock reportedly anticipates that its application with the SEC will be approved this Wednesday, further fueling speculations of an imminent approval by the regulator.
Investors are optimistic about the impact of the crypto investment vehicle on Bitcoin and the broader cryptocurrency industry. It is believed that it would pave the way for an inflow of investment into the sector.
Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International, explained in an email to the International Business Times, "The approval/rejection period for the Spot ETFs BTC filings commences today, with the SEC expected to provide a response by the 10th of January. Market participants maintain expectations for the approval of the 21Shares filing, potentially triggering a cascade approval for all issuers."
"Numerous meetings between the SEC, issuers, and exchanges have fuelled the narrative of an imminent approval. The introduction of ETFs could usher in new investor cohorts from traditional finance, significantly improving market transparency and liquidity and bringing long-term capital inflow in the digital assets market," the analyst added.
For Hatu Sheikh, the co-founder and CMO of the largest on-chain funding platform DAO Maker, the launch of a spot Bitcoin ETF in the U.S. is the most significant event in the crypto industry. However, he believes the approval should be treated as a "sell the news" event.
"This year's most significant crypto event continues to be the first Bitcoin Spot ETF approval in the US. This will have tremendous and far-reaching results throughout the year and for years to come," Sheikh said in an email to IBT.
"The approval itself must, however, be treated as a sell-the-news event. Following a stellar recovery this past year, it's reasonable to expect the market to cool down. Yet, the persistence of crypto's four-year cycle suggests potential price increases as the year progresses," he added.
Moreover, Sheikh forecasted that a spot Bitcoin ETF would not only attract interest from traditional financial institutions but also first-time cryptocurrency investors, providing better liquidity compared to centralized crypto exchange platforms.
"Traditional financial institutions will first see strong interest from people native to the space and want a safe alternative to trading assets. A step away from crypto exchanges. Over time, the ETF would draw interest from crypto first-timers," Sheikh explained, before adding, "The ETF is expected to have significantly better liquidity than crypto exchanges, with major traditional market makers lining up to manage liquidity. There are far too many positives with trading the ETF rather than spot Bitcoin on crypto exchanges."
As of 2:10 p.m. ET on Monday, Bitcoin was trading in the green zone at $45,933.91, with a 24-hour trading volume up by 88.47% at $34.77 billion.
Bitcoin's latest price action represents a 4.19% increase in value for the day and a 6.59% gain over the last seven days.
Data from CoinMarketCap shows that Bitcoin's current circulating supply stands at 19.59 million BTC and its market cap is at $899.96 billion
