Bitcoin Nears $29K as Fidelity ETF Amendment Bumps Bullish Sentiment

Some analysts said the amendments show the U.S. Securities and Exchange Commission is holding active discussions with related parties.

AccessTimeIconOct 18, 2023 at 8:48 a.m. UTC
Updated Oct 18, 2023 at 3:38 p.m. UTC
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  • Bitcoin jumped to a two-month high on Wednesday after Fidelity joined the ranks of firms amending their spot bitcoin ETF filings.
  • The amendments could indicate open communication lines between the firms and regulators.

Bitcoin (BTC) shot to as high as $28,817 earlier today as amendments to a spot bitcoin ETF filing in the U.S. fired up bullish sentiment.

The largest cryptocurrency added 2.8% in the past 24 hours, reaching a two-month high and leading gains among major tokens. The advance extended its weekly rally to almost 7%.

Asset management giant Fidelity filed an amendment to its proposed spot bitcoin ETF, the Wise Origin Bitcoin Trust, with the U.S. Securities and Exchange Commission (SEC) late Tuesday, specifying how it will safeguard customers’ bitcoin in custody accounts and disclose risks related to the shaky regulatory environment around cryptocurrencies, among other factors.

Fidelity follows Ark Invest and Invesco, which also recently amended their spot bitcoin ETF filings. Invesco refiled on Oct. 11 and Ark Invest followed suit a day later. These developments are likely a sign of ongoing discussions between prospective ETF providers and the SEC – helping spark bullish sentiment among traders, market observers said.

“More proof that potential spot Bitcoin ETF issuers are in communication with SEC regarding changes/amendments required for SEC to consider approving,” James Seyffart, a research analyst at Bloomberg Intelligence, posted today on X (formerly Twitter). “Positive signs (in my opinion).”

Some firms expect the approval, when it occurs, to add at least $1 trillion to overall market capitalization, which is currently at $1.1 trillion, in coming months.

Speculation of a spot bitcoin ETF getting approved made the rounds earlier this week, causing bitcoin to jump almost 10% in a move BlackRock CEO Larry Fink suggested illustrated the “pent up” investor interest for the crypto market. Prices continued to rise even after the rumor was shown to be false.

Meanwhile, some analysts forecast bitcoin will touch $29,400 in coming days, citing increasing volumes.

“We continue to see continued elevated trading volumes. We view this as good news, given that the price is not high by historical standards,” said Alex Kuptsikevich, FxPro senior market analyst, in a note to CoinDesk. “It is an influx of fresh buyers rather than an active exit from the market.”

“Buyer interest is concentrated around bitcoin. Current positions near $28,500 indicate bullish dominance and the market could quickly move to the $29.4K level,” Kuptsikevich said.

Edited by Sheldon Reback.

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Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


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