Bitcoin (BTC) staged a late-day recovery in Tuesday’s European trading session, having bounced from intraday lows of $45,450 to test $47,000 once again.
The world’s largest cryptocurrency shot above 47k for the first time in 22 months on Monday, owing to fever-pitch excitement over spot-bitcoin exchange-traded fund approvals.
Quoting sources, CNBC’s Kate Rooney stated that applications are “now widely expected to get the green light this week” before trading commences on either Thursday or Friday.
January 10 also sees the deadline for the SEC to approve or reject the Ark 21Shares application.
Investment analyst Matteo Greco at Fineqia Internation predicted that “the SEC will communicate its decision to 21Shares by January 10, and likely notify most, if not all the 12 other issuer applicants on the same day of approval.
“This approach aims to prevent 21Shares from having a first-mover advantage over other issuers”.
Bitcoin trading volumes have also surged.
According to the data, bitcoin has recorded around $14.1 billion in daily volume since the start of the year, reflecting a 61% increase from the $8.75 billion recorded the previous week.
“The connection between elevated volumes and the impending decision on BTC Spot ETFs is apparent when examining the daily spot volume on centralised exchanges using a weekly moving average,” noted Greco.
Grayscale Bitcoin Trust (GBTC), the world’s largest trust solely invested in bitcoin, has sharply narrowed its discount in anticipation of converting the trust into an ETF this week.
At the time of writing, the GBTC discount to net asset value (NAV) was less than 6%; a remarkable improvement from the near-50% discount in early 2023.
Investment analyst Matteo Greco at Fineqia Internation predicted that “the SEC will communicate its decision to 21Shares by January 10, and likely notify most, if not all the 12 other issuer applicants on the same day of approval.
“This approach aims to prevent 21Shares from having a first-mover advantage over other issuers”.
At the time of writing, bitcoin was a few percentage points shy of $47,000.
Bitcoin’s week-on-week performance – Source: tradingview.com
Read more on Proactive Investors AU
