The developments between US SEC and Grayscale over the past weekend led to whales accumulating Bitcoin in huge numbers.
Over the last week, the world’s largest cryptocurrency Bitcoin (BTC) gave a strong breakout moving all the way to the $28,000 level. As of press time, the BTC price is up 3.8% trading at $27,904 with a market cap of $544 billion.
The recent price rally comes as the US Securities and Exchange Commission (SEC) decided not to challenge the court ruling that allowed Grayscale to convert its GBTC to a spot Bitcoin ETF. This has further improved the odds of the spot Bitcoin ETF coming sooner to the market.
In a recent note, Bloomberg analysts Eric Balchunas and James Seyffart forecast a high likelihood, estimated at 90%, of a spot Bitcoin exchange-traded fund (ETF) gaining approval by January 2024. They based this prediction on the recent adjustments made to the spot Bitcoin ETF prospectuses submitted by Ark Invest and 21Shares, interpreting these updates as a sign of positive interaction with the Securities and Exchange Commission, which often precedes regulatory approval.
Balchunas and Seyffart expressed their confidence in the potential approval, particularly by Ark’s upcoming January 10 deadline. James Seyffart stated that he expects the dialogue between the US SEC and Grayscale to start this week.
1. Done deal I guess if this is accurate. No en banc application
2. No. I do not think they will appeal to the Supreme Court either.
3. Dialogue between Grayscale and SEC should begin next week. Hoping for more info on next steps sometime next week or week after? https://t.co/2EayzqeKGq
— James Seyffart (@JSeyff) October 13, 2023
On the other hand, on-chain data also shows that Bitcoin whales have been accumulating over the last weekend. The latest report from Santiment notes: Bitcoin’s resurgence to the $28,000 mark can be attributed to the movement of long-dormant coins that were previously stationary. This shift marks the most significant transfer of inactive Bitcoin (BTC) between wallets since July, and it is indicated by notable spikes in our Age Consumed metric, signifying potential shifts in the price direction.
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Ethereum also showed positive movement, with a modest half-percent increase to maintain levels above $1,550. Early morning trading saw most top cryptocurrency tokens in the green.
Tron and BNB each recorded gains of 2 percent, while Chainlink saw a more than 1 percent increase. Solana and Litecoin were among the notable performers during this time. On the other hand, Polygon and Dogecoin were among the top gainers for the day.
The overall cryptocurrency market cap exhibited significant gains, reaching the $1.06 trillion mark, recovering from a one percent dip in the previous 24 hours. Additionally, total trading volumes saw a remarkable surge of up to 38 percent, reaching $19.4 billion.