Bitcoin's Jump to $30,000: Hints at a 'Trader's Guide' to Launching an ETF

Oct 18
The quick 10% increase in bitcoin provided investors with a preview of the potential effects of the upcoming Securities and Exchange Commission decision on whether to permit exchange-traded funds that invest directly in cryptocurrencies.

The largest digital asset quickly reached $30,02 on Monday, its highest price since August, after it was falsely reported that BlackRock Inc. had been permitted to start a spot ETF.
After the biggest money manager in the world revealed that their proposal was still pending, the move was called off, sending Bitcoin up 4.4% on October 16 and barely changing at roughly $28 in New York on Tuesday. 400.

In anticipation that the SEC may soon drop its resistance to the products, BlackRock is one of approximately a dozen companies looking to launch the first Bitcoin ETFs listed in the United States. Those who are optimistic claim that these funds would encourage a greater usage of cryptocurrencies.

According to James Seyfarth, an analyst for Bloomberg Intelligence ETF, "It felt like a test run for what would happen if these measures got approved." It effectively served as a guidebook for traders.

According to data from Coinglass, traders who were banking on lower prices liquidated positions worth $95 million in Bitcoin over the past day.

Some of Bitcoin's strongest rises in 2023 have been spurred by events relating to spot ETFs. The coin peaked at $30,000 in June when industry titans BlackRock and Fidelity Investments requested SEC approval to launch funds, but it later dropped to about $26,000.

Another increase occurred in late August, when a US court decision may have made Grayscale's $17.7 billion Bitcoin Trust eligible to become an ETF.

The SEC has been cracking down on the cryptocurrency industry this year but has so far rejected spot Bitcoin ETFs due to concerns like fraud and market manipulation in the spot token market. However, it has permitted ETFs to store Bitcoin and Ethereum futures.

After bitcoin's volatility on Monday, the regulator urged people to "be careful of what you read on the internet" in a statement on X, the website that replaced Twitter. The SEC itself is the best source of information regarding the SEC, according to the agency.

"Approval of spot Bitcoin ETFs could see Bitcoin jump to around $32,000, but the question is how far that will happen and then what will happen at the highs of the range—at least I wouldn't expect it to break through the highs of the range for the first test," said Tony Sycamore, market analyst at IG Australia Pty.

Created with