A senior director at BTC has identified the primary driver of the current Bitcoin price rise. He noted that “the race is heating up” for the launch of spot bitcoin exchange-traded funds (ETFs), underscoring that significant asset managers are “getting ready to acquire the underlying asset to offer the ETF to retail and institutional investors.”

The Main Reason for BTC Price Increase

Yiannis Giokas, senior director at Moody’s Analytics, has provided insights into the factors driving the current spike in bitcoin’s price, stressing the SEC’s anticipated approval of spot bitcoin exchange-traded funds (ETFs).

Moody Anaylsts is a Moody’s Corp. company that focuses on non-rating operations.

“The biggest driver behind the surge in bitcoin price is likely the number of applications for spot BTC ETFs, which are expected to be approved by the SEC in January,” the director explained in an email to Bitcoin News.

He went on to BTC :

The competition to create these vehicles is heating up, with prominent asset managers preparing to acquire the underlying asset to offer the ETF to retail and institutional investors.

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Bloomberg predicts that the SEC will approve spot bitcoin ETFs by January 10. To address their applications, the securities regulator has met with exchanges and spot bitcoin ETF issuers such as Blackrock, Ark Invest, and Grayscale Investments.

Last week, Ric Edelman stated that financial advisors are waiting for the SEC to approve spot bitcoin ETFs before offering these investments to their clients. JPMorgan, on the other hand, has expressed concern that spot bitcoin ETFs could put “severe downward pressure on bitcoin prices.”

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