Bitcoin (BTC-USD) has broken through the $36,000 level (£29,320), and at one point ranged close to $37,000 (£30,130) in the past 24 hours, as investors anticipate that a spot bitcoin ETF will be approved soon.
The world's largest digital asset by market capitalisation is now trading at $36,650 (£29,844), as of the time of writing, according to data from Coingecko. This price appreciation marks an 18-month high for the digital asset, as expectations of an approval for a spot bitcoin exchange traded fund (ETF) intensify.
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Bitcoin reached its highest level since May 2022, gaining almost 4% in the past 24 hours. The digital asset's rally has brought many smaller altcoins along with it. Ether (ETH-USD), the second largest digital asset by market cap, increased by over 2% in the past 24 hours. Other altcoins, such as solana (SOL-USD) and cardano (ADA-USD) also gained, increasing by around 1% and 3% respectively.
The latest market activity has been driven by anticipation that the US Securities Exchange Commission (SEC) will soon approve a spot bitcoin ETF.
On Thursday, a window opened for the SEC to “theoretically issue approval orders,” according to a note by Bloomberg Intelligence analysts James Seyffart and Eric Balchunas.
"A brief window opens on November 9 for the SEC to potentially approve all 12 US spot bitcoin ETF applicants, including Grayscale's GBTC. It will be open for at least eight days. Even if approvals don't arrive this month, we still believe there's a 90% chance of approval by January 10," the Bloomberg analysts noted.
A spot bitcoin ETF is a financial product that investors hope will open the gateway for mainstream capital to flood the crypto market. If the SEC approves the multiple spot bitcoin ETF applications that have been filed with the US regulatory authority, the digital asset space could receive multiple benefits, such as:
Regulatory Oversight: An ETF would be under SEC jurisdiction, lending it credibility.
Retail Accessibility: ETFs are more accessible to the general public, opening the door to more widespread bitcoin investment.
Investor Protection: The SEC’s role in ensuring that the financial product meets rigorous standards enhances its appeal.
Institutional Adoption: With the potential for significant investments from pension and mutual funds, an approved spot bitcoin ETF could funnel billions into the crypto market
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