Bitcoin surges as excitement mounts for spot ETFs

Bitcoin (BTC) has made a remarkable comeback, breaching the $35,000 threshold for the first time since May 2022. This surge marks an impressive gain within the span of just 24 hours and is driven by the positive signs of the most eagerly anticipated crypto event of the year: a BTC spot ETF. 

On 23 October, Bitcoin's price experienced a sudden and significant uptick, with BTC jumping by over 10% from $31,000 to break through $34,000. In less than two hours after surpassing the $34,000 mark, Bitcoin reached a high of $35,300. 24 October, Monday's rush has cooled into a consolidation phase, with Bitcoin trading at approximately $33,800.

This sudden surge in Bitcoin's value coincided with renewed interest in the potential approval of spot ETFs and a notable increase in trading volumes across spot markets.

Analysts hail spot BTC ETF listing as a positive signal

Notably, the iShares Spot Bitcoin Exchange-Traded Fund (ETF) proposal put forth by the investment firm BlackRock has been listed on the Depository Trust & Clearing Corporation (DTCC). The iShares Spot Bitcoin ETF applied for the listing and trading of its shares in June. It carries the ticker symbol IBTC and may be listed on the Nasdaq stock exchange.

This development suggests the possibility that the US Securities and Exchange Commission (SEC) will approve it. Respected market commentators thought as much, such as analyst Scott Johnson, who shared two pieces of information on X (formerly Twitter) that could suggest a spot Bitcoin ETF approval might be nearing for the investment giant. Johnson pointed out that BlackRock has obtained a specific CUSIP licence and may soon commence the process of "seeding" its spot ETF product with cash, possibly as early as this month. Bloomberg ETF analyst Eric Balchunas also chimed in on the discourse surrounding spot Bitcoin ETFs, stating that the DTCC listing was a significant step in the process of bringing a cryptocurrency ETF to the market and that it was "hard not to view this as them getting signal that approval is certain/imminent".

If BlackRock's application is approved, it could open the way for other spot crypto ETF filings currently under review by the SEC, including ones from ARK Investment, Fidelity and Valkyrie. To date, the SEC has not approved a spot Bitcoin or Ether spot ETF application for listing on a US exchange, but it has allowed Bitcoin futures-based investment vehicles since October 2022.

The arrival of BTC spot ETFs on the market could dramatically increase the value of Bitcoin, according to some analysts. Crypto investment firm Galaxy Digital predicted a 74% increase in the price of the world's first cryptocurrency based on a comparative analysis of gold spot ETFs. Other investment analysts have forecast that BTC will once again break $50,000, based on the impact of spot ETFs and the 2024 block reward halving.

BTC spot trading volume jumps over 200%, altcoins ride the wave

The sudden price surge also coincided with a substantial increase in Bitcoin's spot trading volume. 24 October, spot trading volume had surged to over $35 billion in the past 24 hours, representing a 241% increase in the same time frame.

While Bitcoin experienced the most significant price increase, other cryptocurrencies also benefited from the rising market sentiment. Ethereum (ETH) rose by 7%, Solana (SOL) surged by an impressive 11%, Dogecoin (DOGE) increased by 8%, and Cardano (ADA) posted a 5% gain.

Even putting aside the immediate price action, the sudden cryptocurrency price surge indicates renewed interest in the crypto market from investors. Firms with substantial BTC holdings recorded significant gains, with MicroStrategy gaining almost 9% on Tuesday. The current bullish sentiment around Bitcoin isn't necessarily only down to spot ETF fever, either. Other factors, such as the next BTC halving event that's just five months away, may also be driving traders and investors to accumulate the original cryptocurrency before the supply decreases.

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Given the recent developments, there's potential for a substantial increase in the value of Bitcoin and the broader cryptocurrency market, driven by support from institutional investors, as well as interest in spot ETFs and the upcoming halving event. If you're interested in capitalising on the price fluctuations of Bitcoin, Ethereum or other digital currencies, StormGain offers the most advantageous conditions for both new and experienced traders.

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