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Bitcoin continues to leave investors undecided as it is affected by the ongoing macroeconomic uncertainties in the US. However, the fact that the price of Bitcoin reached its highest level this week, at $28,516, indicates a significant strengthening. The direction of Bitcoin price can still be influenced by increasing institutional activities and institutional investor interest in Bitcoin.
Updated ETF Application
Fidelity Investments, a major asset management firm, has updated its spot Bitcoin ETF along with the proposal from the Securities and Exchange Commission (SEC). With this step taken on October 17th, the ETF named Wise Origin Bitcoin Trust updated and summarized how the company plans to protect its customers’ Bitcoin assets in their accounts and how they will protect themselves from the risks associated with the volatile regulatory environment of cryptocurrencies.
Fidelity also changed its spot Bitcoin ETF applications by following the steps taken by other major institutions such as ARK Invest and Invesco. ARK Invest applied on October 11th, while Invesco re-applied on October 13th. These steps indicate an ongoing dialogue between ETF applicants and the SEC, which was confirmed by ARK Invest CEO Cathie Wood this week on ETF Edge:
“We have responded to the SEC’s request for information regarding our Bitcoin application. The fact that the SEC has intervened indicates a change in behavior.”
Grayscale Victory Brings Hope for ETFs
Wood’s comment, combined with Fidelity’s filing, revived the optimistic sentiment towards Bitcoin. Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), reached its lowest Net Asset Value (NAV) premium discount since December 9, 2021.
The main reason for this development is undoubtedly the victory that the company won against the SEC on October 14th. After the court decision, the SEC announced that it would not appeal the US Court of Appeals’ decision dated August 29th. This indicates that ETF applications now need to be reviewed. Despite this development, the SEC continues to delay the approval of a Bitcoin ETF.
