BTC Surpasses $40k, the Highest It Has Been Since April 2022

BTC Flies Past US$ 40K Mark

Bitcoin currently trades for US$ 40,762 (AU$ 61,183) an increase of 3.69% in the past 24 hours and 9.42% in the past week.

Crypto analytics platform Santiment noted that it is the first time since April 28, 2022, that Bitcoin has surged past the $40K mark as the weekend concluded on a high note. The market’s reaction to ‘fear, uncertainty, doubt’ (FUD) and ‘fear of missing out’ (FOMO) surrounding the upcoming spot exchange traded funds (ETF) confirmation dates will be key in determining if Bitcoin reaches US$ 50K quickly.

Bitcoin ETF Decision in January 2024?

Meanwhile, BlackRock has updated its Bitcoin ETF application to mitigate the SEC’s concerns over market manipulation and broker-dealer registrations. The new prepaid model requires offshore market makers to pay cash upfront before receiving ETF shares, reducing broker-dealer risk. BlackRock maintains an adjusted in-kind redemption structure for benefits like lower costs and minimised manipulation risks, aiming to align with regulatory standards and benefit shareholders. Despite the SEC’s historical rejections of spot Bitcoin ETFs over manipulation and surveillance concerns, the financial industry, including firms like BlackRock and Fidelity, anticipates potential approval by January 2024.

ETF Decision to Send BTC To the Moon?

A spot Bitcoin ETF is seen as a significant milestone as it allows traditional finance (trad-fi) institutions such as banks, asset managers, and pension funds to invest in crypto without the need to navigate the complexities of holding the asset themselves.

Bitcoin analyst Willy Woo compared the significance of a Spot ETF approval to that of the approval of the SPDR Gold Trust which led to an eight-year rally without a single year in the red.