Bitcoin Jumps to Near $28K as Bulls Bet on ETF Approval

Traders could be betting on a development that buoys hopes for a spot bitcoin ETF in the US.

AccessTimeIconOct 16, 2023 at 6:29 a.m. UTC
Updated Oct 16, 2023 at 3:47 p.m. UTC
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Bitcoin (BTC) jumped some 4.5% in the Asian morning hours Monday amid hopes that a bitcoin exchange-traded fund (ETF) could get approved in the coming months, sparking bullish hopes.

Bitcoin traded just under $28,000, reversing all losses over the past week. The jump seemed to be a continuation of Friday’s reaction to the U.S. Securities and Exchange Commission (SEC) decision to not appeal to a recent Grayscale ruling.

The SEC will apparently not appeal a court reversal of a decision to Grayscale convert its popular bitcoin trust into a more investor-friendly exchange-traded fund, according to a person familiar with the matter, possibly clearing the way for the first bitcoin ETF in the U.S.

This helped boost the odds the Grayscale Bitcoin Trust (GBTC) can be turned into a more appealing ETF, some traders said.

"The news in the U.S. over Grayscale’s ETF application has potentially very significant ramifications for the bitcoin market. The story of spot price ETF approval has been a dominant narrative in the bitcoin market for several months now," said Simon Peters, market analyst at eToro, in a note to CoinDesk.

"As the barriers to approval fall, hopes among investors continue to rise that we could see these products in the market sooner rather than later," Peters added.

UPDATE (Oct. 16, 08:53 UTC): Adds analyst comment.

Edited by Parikshit Mishra.

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