As institutional investors move to boost sentiment, the price of Bitcoin holds $28,000
Even as macroeconomic headwinds in the United States weigh on investor sentiment, Bitcoin (BTC) prices continue to show strength, hitting an intraday high of $28,516 this week. To a certain extent, BTC price stability can be attributed to increasing institutional activity and increased interest from positive institutional investors in Bitcoin.
On October 17, Fidelity Investments, a large asset management institution, updated its position on the Bitcoin ETF with the Securities and Exchange Commission (SEC). The ETF, called Wise Origin Bitcoin Trust, updated how Fidelity plans to protect clients' bitcoins in escrow accounts and expressed concerns about the stable regulatory landscape of cryptocurrencies.
Fidelity is following in the footsteps of other large institutions such as ARK Invest and Invesco, which have updated their Bitcoin ETF portfolios. ARK Invest refilled on October 11, with Invesco refilling on October 13.
These actions suggest an ongoing dialogue between ETF applicants and the SEC, ARK Invest CEO Kathy Wood seemed to confirm on ETF Edge this week.
“We responded to the SEC's request for information regarding our Bitcoin filing. The SEC chose to participate, which is a change in behavior.”
Wood's comments, combined with Fidelity's filing, are providing renewed optimism for Bitcoin. Grayscale's Bitcoin investment vehicle, the Grayscale Bitcoin Trust (GBTC), which is similar to an ETF, has reached its lowest net asset value (NAV) premium since December 9, 2021.
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Grayscale won a victory against the SEC on October 14, saying the commission will not appeal an August 29 ruling by the US Court of Appeals, meaning their ETF must now be reviewed.
Despite all the momentum, the SEC continues to delay approval of the Bitcoin ETF.
Some analysts estimate that at least $600 billion in new demand for Bitcoin could be added when the license is issued. In an interview on Fox Business on October 16, BlackRock CEO Larry Fink spoke about Bitcoin after the fake spot BTC license news rally.
“I think the rally will be a flight to quality with the issues surrounding the Israeli war. [and] International terrorism. And I think there are a lot of people running for quality — whether that's in Treasurys, gold or crypto, depending on what you're looking at.
Related: How High Can Bitcoin Price Go in 2024?
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
