BTC Surpasses YTD High Amid Nasdaq Bitcoin ETF Listing
The noise around spot Bitcoin (BTC) ETFs is reaching a fever pitch, with financial giant BlackRock listing its fund on the Nasdaq index. The news follows last week’s mishap, where Cointelegraph tweeted that the SEC had approved BlackRock’s ETF – only for the community to soon uncover the information was false.
However, the events clearly demonstrated the sector’s desire for a Bitcoin spot ETF, with BTC’s price running 10+% in response to the fake news. The momentum didn’t stop there though, as BTC powered through the $30k (AUD $47k) resistance level to hit its YTD high of $34k (AUD $53k), a weekly gain of 18%. The price action has now consolidated around the $33k (AUD $52k) region.
What Does the Nasdaq Listing Actually Mean?
BlackRock has been in the Bitcoin news cycle for the best part of a week now, and it seems they are confident in being the first spot Bitcoin fund to be approved by the Securities and Exchange Commission (SEC). The pending fund was listed as the iShares Bitcoin Trust (IBTC) on the Depository Trust & Clearing Corporation, responsible for overseeing transactions made on the Nasdaq.
It’s worth noting this move doesn’t mean that BlackRock is necessarily any closer to a spot Bitcoin ETF than they were prior. It is a simple preparatory move that ensures if (or when) they receive spot fund approval, they can go to market promptly. Some analysts believe that most spot Bitcoin ETFs will end up going live on the same date, regardless of BlackRock’s work in advance.
Attorney Jeremy Hogan compared the move to bringing home a date to your apartment:
What’s Next For Bitcoin?
The crypto winter has dragged on for nearly 24 months, but all things considered, Bitcoin has had an excellent 2023 so far. The king of digital currencies is up nearly 100% since January this year, outperforming most major assets across most markets. However, many in the industry believe BTC’s price still has more to run and will lead the rest of the sector into the next bull market.
The key to this move may be the spot Bitcoin ETF, or the impending 2024 Bitcoin halving – but some analysts are suggesting BTC’s uptrend should be viewed on a more macro level. Paul Brody, leader at EY, suggests that people are buying Bitcoin as an asset, rather than as a payment tool.
The transition of BTC from a virtual currency into a store of wealth with a finite supply (hence the comparisons to digital gold) has led investors to take the asset seriously from a long-term value perspective.
In the short term, $30k (AUD $47k) may act as a support level for Bitcoin’s price as it looks to consolidate itself above the milestone for the first time since July.