Bitcoin Hits $30k After 5.5% Gain in a Day: What Could be the Reason?

Summary

• The price of Bitcoin surged to $30,000 with a 5.5% daily gain, largely due to growing optimism regarding the possible approval of a U.S. spot Bitcoin ETF.
• With Grayscale's legal victory, new Bitcoin ETFs seem more likely, with the industry expecting the SEC to approve the new ETFs.
• Coinbase's Chief Legal Officer expressed confidence in the imminent approval of a U.S. spot Bitcoin ETF, further fueling positive market sentiment.
• With the SEC withdrawing its case against Ripple executives, a renewed surge of confidence in the cryptocurrency market may have contributed to Bitcoin's rally.
• The cryptocurrency industry is eagerly awaiting the SEC's decision on ETF approval, with increasing pressure on the SEC to soften its stance.

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Bitcoin's Notable Surge

Bitcoin (BTC) has surged to $30,000, reflecting an impressive gain of over 5% in the last 24 hours. This surge has contributed to Bitcoin's weekly gains of over 11%, catching the attention of the cryptocurrency community. The key question on everyone's mind is: What has fueled this remarkable ascent?

ETF Approval Momentum

One of the primary drivers behind Bitcoin's recent surge might be the mounting bullish sentiment around the possible approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. This development has sparked renewed optimism in the cryptocurrency market, with many believing that an approved ETF could significantly impact Bitcoin's performance.

Grayscale's Victory and its Implications

Notably, a recent report by CoinDesk highlights a federal court's move to formalize Grayscale's legal win against the Securities and Exchange Commission (SEC) by upcoming Monday. The SEC's decision not to appeal the court's ruling has further solidified the path for potential new ETFs in the market.

As the deadline day approaches, experts are pondering whether the court will close the case without comment or issue further directives to the SEC.

Grayscale's New ETF Filing

Grayscale filed an S-3 registration statement with the SEC on Oct. 19, intending to list Grayscale Bitcoin Trust shares on the New York Stock Exchange (NYSE) Arca under the ticker symbol GBTC.

Grayscale's new filing is in accordance with its efforts to convert the Grayscale Bitcoin Trust into a Bitcoin ETF. 

Pressure on the SEC

Several ETF providers have been making amendments to their filings in recent days, alongside mounting pressure on the U.S. Securities and Exchange Commission to soften its stance on Bitcoin ETF approval. Even four House Financial Services Committee members have urged the SEC to heed the courts' decisions and cease its efforts to block Bitcoin ETFs from regulatory approval.

Jan. 10 Deadline and JP Morgan Report

According to a JP Morgan report, approval of the ETFs is likely before January 10. This is a significant date as it marks the final deadline for the Ark 21Shares applications, making the potential approval of the applications even closer.

Coinbase's Confidence

In an interview with CNBC, Coinbase's Chief Legal Officer, Paul Grewal, expressed strong confidence in the imminent approval of a U.S. spot Bitcoin ETF, following the SEC's legal setback.

Ripple's Legal Triumph Impact

Additionally, Bitcoin's recent rally might have been further propelled by the recent legal victory of Ripple against the SEC. With the SEC withdrawing its case against Ripple executives, the cryptocurrency market may be experiencing a renewed surge of confidence and investment.

Bitcoin is trading at $29,955, as of writing.