In just a week, Bitcoin (BTC-USD) broke above $28,000 to trade above $30,000 on Oct. 20. Growing excitement that the Securities and Exchange Commission would approve a spot bitcoin exchange-traded fund fueled the rally.
The nearly 10% weekly gain is a defining moment for BTC. It defies obstacles again by overcoming doubt. A spot bitcoin ETF increases awareness for the Bitcoin market. It raises liquidity as it attracts more investors into the market. Coinbase’s Chief Legal Officer, Paul Grewal, is reportedly hopeful that the SEC will soon approve the ETF.
Bitcoin fans should exercise caution. The SEC lost its case to delay the ETF. It is in no hurry to speed up the listing.
The CEO of Galaxy Digital (GLXY), Michael Novogratz, is similarly optimistic despite the risks of delays. He believes an ETF that invests directly in Bitcoin will get approval this year. That is a bullish opinion: there are less than three months left in 2023.
Risks
The cryptocurrency market needs BTC, which is decentralized. The holder owns BTC through unique codes. No one except the owner holds it. However, centralizing BTC through an ETF has risks. A centrally managed custody would invite mainstream speculators to pump its price.
For now, watch Greyscale’s GBTC.
