The crypto market has started the month of November on a positive note, as Bitcoin (BTC) and Ethereum (ETH) prices surged to new highs amid growing optimism about the approval of a Bitcoin spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
Bitcoin broke above $35,000 for the first time since May 2022, reaching a high of $35,198 on October 23¹. Ethereum also followed suit, climbing to $1,798 on October 31¹. Both cryptocurrencies are now up more than 100% year-to-date in 2023¹.
The main catalyst for the rally was the speculation that the SEC will soon greenlight the first ever Bitcoin spot ETF to trade on a major U.S. exchange¹. A spot ETF would invest in cryptocurrency directly, unlike the existing Bitcoin futures ETFs that track the price of Bitcoin futures contracts².
Investors are hopeful that a spot ETF would attract more institutional and retail demand for Bitcoin, as well as enhance its legitimacy and credibility in the eyes of regulators and the public². Some of the leading asset managers that have applied for a spot ETF include Fidelity Investments, BlackRock, and Grayscale Investments¹².
The SEC has not yet made a final decision on any of the spot ETF applications, but it is expected to do so by November 14². The regulator has previously rejected several spot ETF proposals, citing concerns over market manipulation and investor protection².
However, some analysts believe that the SEC may be more open to approving a spot ETF this time, given the growing maturity and adoption of the crypto market, as well as the pressure from other jurisdictions that have already launched crypto ETFs, such as Canada and Brazil²³.
If a spot ETF gets approved, it could also pave the way for other crypto products, such as an Ethereum spot ETF or a crypto index fund². This could further boost the growth and innovation of the crypto industry in the coming years.
The crypto market is known for its volatility and unpredictability, so there is no guarantee that a spot ETF will be approved or that it will have a lasting positive impact on the prices of Bitcoin and Ethereum. However, for now, crypto investors are enjoying the ride and hoping for the best.
Sources
(1) November 2023 Crypto Market Forecast – Forbes Advisor. https://www.forbes.com/advisor/investing/cryptocurrency/crypto-market-outlook-forecast/.
(2) Headlines | News | CoinMarketCap. https://coinmarketcap.com/headlines/news/.
(3) Here's What to Expect from the Crypto Markets in H2 2023 - Investopedia. https://www.investopedia.com/here-s-what-to-expect-from-the-crypto-markets-in-h2-2023-7555315.
(4) November 2023 Crypto Market Forecast – Forbes Advisor. https://www.forbes.com/advisor/investing/cryptocurrency/crypto-market-outlook-forecast/.
(5) Headlines | News | CoinMarketCap. https://coinmarketcap.com/headlines/news/.
(6) Here's What to Expect from the Crypto Markets in H2 2023 - Investopedia. https://www.investopedia.com/here-s-what-to-expect-from-the-crypto-markets-in-h2-2023-7555315.
(7) What to expect from the crypto market in 2023: Watch ... - Cointelegraph. https://cointelegraph.com/news/what-to-expect-from-the-crypto-market-in-2023-watch-the-market-report.
