Bitcoin Skyrockets to $30k Amidst Growing Hopes for US ETF Approval

Bitcoin (BTC) has been making significant moves, surging to an impressive $30,000 within the last 24 hours. This jump marks an extension of its weekly gains, which now stand at over 5%.

The driving force behind this bullish run appears to be the growing optimism surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) in the United States.

Cryptocurrency Market Rallies on Prospect of Bitcoin ETF

What’s particularly striking is the significant jump in the value of tokens that originated from Bitcoin forks. Both Bitcoin Cash (BCH) and Bitcoin SV (BSV) have seen remarkable gains, soaring by as much as 26%. This surge in value suggests an element of irrational exuberance in the market, as investors embrace alternative tokens.

A noteworthy development in this context is the series of amendments made by various ETF providers to their filings over the past week. These changes coincide with mounting pressure on the U.S. Securities and Exchange Commission (SEC) to reconsider its position on approving a Bitcoin ETF. This collective effort by ETF providers is a clear indication of the industry’s eagerness to see a Bitcoin ETF gain regulatory approval.

In an intriguing twist, members of the House Financial Services Committee have thrown their weight behind this cause. Four committee members recently penned a letter to SEC Chair Gary Gensler, urging the commission to heed the decisions of the courts and abandon any attempts to obstruct Bitcoin ETFs from receiving regulatory approval.

How GBTC’s Conversion Could Impact the Market

Another source of optimism among traders centers on the Grayscale Bitcoin Trust (GBTC), which is being considered for conversion into an ETF. GBTC holds a significant position as one of the largest institutional Bitcoin portfolios. Grayscale is just one of several asset management firms seeking a Bitcoin spot ETF, with heavyweight contenders like BlackRock, Fidelity, and WisdomTree all in the running.

A favorable ruling in Grayscale’s favor could have far-reaching implications. It has the potential to shift overall market sentiment towards the bullish side and lay the groundwork for a broader market upswing. Traders and market observers anticipate that such a development could breathe fresh life into the cryptocurrency market.

Lucy Hu, a senior trader at Metalpha, shared her insights, underlining the role of ETF approval and the forthcoming Bitcoin halving event in April in potentially catalyzing a robust bull market. The sentiment in the market appears to be growing increasingly positive, as the market anticipates key regulatory decisions and milestones in the near future.