Bitcoin Prices Fly to Kick Off 2024 on ETF News
Bitcoin Prices Fly to Kick Off 2024 on ETF News
A move above $45,500 brought a fresh sense of optimism to the asset
- Bitcoin prices surge on news that asset managers updated documents with SEC.
- The first spot Bitcoin exchange traded funds (ETFs) could launch in a matter of weeks.
- Technical outlook leans to the bullish side with a clear trend higher from last year’s action.
Bitcoin prices (/BTCF4) rose above $45,500 on Tuesday, marking the highest level for the cryptocurrency since April 2022.
The move puts BTC on track to record a gain of nearly 7% to start off 2024 and has brought a fresh sense of optimism to the asset. That follows strong trading during the final few months of 2023.
What is driving the move?
The market could be only a few weeks away from seeing the first exchange-traded fund (ETF) that will track the spot price of bitcoin. According to Reuters, several firms, including Blackrock Asset Management (BLK) and VanEck, submitted updated regulatory filings with the Securities and Exchange Commission (SEC) last week.
Those firms were able to submit updated documents by the end of last year. So, approval could be possible as soon as this month, perhaps in the next couple of weeks. The SEC may even notify Blackrock and others of pending approval as soon as this week, according to the Reuter’s report.
A spot Bitcoin ETF would be a big step for the speculative asset and would cement its place as a bona fide asset next to the likes of stocks, bonds and commodities such as gold. Currently, there are only Bitcoin ETFs linked to futures contracts, along with similar Ethereum products. The SEC has previously rejected spot Bitcoin ETFs for reasons such as they would potentially harm investors.
However, last year, a U.S. appeals court ruled that the SEC acted unreasonably when it denied Grayscale Investments bid to launch a spot ETF product. Grayscale subsequently sued the SEC and secured a successful verdict, setting up the soon-to-be potential approvals. Overall, it’s a big win for Bitcoin and cryptocurrencies, and the next few weeks should deliver a clearer picture of the future of Bitcoin trading.
Bitcoin technical outlook
Prices are looking higher and have more room to run before becoming overextended on a technical basis. The next level of potential resistance stands at 48,475, which was the March 2022 high. For now, however, prices are above the key moving averages and the preceding trend is clearly bullish. That said, we will likely see buying on any short-term weakness while markets await more news on the ETF applications.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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