Bitcoin broke through $35,000, reaching an 18-month high. What exactly is driving the rise in Bitcoin?
At 7 am this morning, Bitcoin briefly broke through $34,000. As of the time of writing, the price of Bitcoin is $33,712, an increase of 11.6%. This wave of growth also brought ETH, which briefly broke through $1,800 and is now quoted at 1,774 yuan, a 24-hour increase of 6.79%.
The sudden increase caught both the short and long positions off guard. According to Coinglass data, the entire network had a liquidation of US$336 million in the past 24 hours, of which US$65.55 million was for long positions and US$271 million was for short positions.
Is BlackRock preparing enough ammunition for Bitcoin spot ETF?
At 00:24 am on October 24th, Beijing time, American financial lawyer Scott Johnsson stated on his social platform that after studying the S-1 amendment submitted by BlackRock, he found that BlackRock had obtained the CUSIP (Committee on Uniform Securities Identification Procedures) Number prepared for the launch of the Bitcoin spot ETF.
CUSIP is the United States Securities Uniform Identification Number, which is widely used in trading clearing and settlement centers in the North American securities market. In the US and Canadian markets, newly listed stocks will use CUSIP as the national securities identification code. CUSIP is like an ISIN code for the United States to the North American National Number Agency (NNA).
In addition, BlackRock stated in the document that it hopes to prepare "Seed Capital" for the Bitcoin spot ETF in October. Seeding ETF means that a bank or broker-dealer (usually) provides initial funds to buy some Bitcoin in exchange for ETF shares that can be traded on the open market on the first day. Seed Capital is usually not a lot, just enough to get the ETF running.
This news alone was enough to get the market excited, and a few minutes later Bitcoin briefly touched $31,000.
Then at 3 a.m., Bloomberg ETF analyst Eric Balchunas posted that the iShares Bitcoin Trust, a subsidiary of asset management giant BlackRock, has been listed on DTCC (Depository Trust & Clearing Corporation). The stock code will be "IBTC". This is part of the process of introducing a spot Bitcoin ETF to the market.
Grayscale's ruling goes one step further
At the same time, news also came from Grayscale.
At 2:55, FOX Business reporter Eleanor Terrett posted on social media that the D.C. Circuit Court has officially made a final ruling on the Grayscale v. SEC case. The court ruled to return the approval power of the Bitcoin ETF to the SEC, and the SEC was told to take the next step in dealing with the Grayscale Bitcoin ETF plan.
Although it was just a formal authorization statement and no new content appeared, the excited community also regarded this as good news - one step closer.
This means that the D.C. Circuit Court has made a final ruling, ending the dispute between the U.S. Securities and Exchange Commission (SEC) and Grayscale, effectively ordering the agency to cancel its decision to reject the asset management company's spot Bitcoin ETF application. The formal closure of the case essentially solidified the court's preliminary ruling two months ago that the SEC's decision to reject Grayscale's attempt to convert its approximately $17 billion Grayscale Bitcoin Trust (GBTC) into a spot ETF was "arbitrary and capricious." Grayscale spokesperson Jennifer Rosenthal said in a statement after the case was closed on Monday: "The Grayscale team looks forward to continuing to work constructively with the SEC to convert GBTC into an ETF. GBTC is ready to operate and we intend to act on behalf of our investors as soon as possible."
As the news came out, the negative premium rate of Grayscale Bitcoin Trust (GBTC) continued to narrow to 13.12%; the negative premium rate of ETH Trust was 22.05%. In addition, the negative premium of ETC Trust was 45.15%, the negative premium of LTC Trust was 10.69%, and the negative premium of BCH Trust was 9.05%.
Although the next approval time for the Bitcoin spot ETF is in January next year.
But it is clear that as BlackRock has obtained the CUSIP for the launch of the Bitcoin spot ETF and hopes to prepare "Seed Capital" for the Bitcoin spot ETF in October, the trial between Grayscale and the SEC has also made new progress. It is really only a matter of time before the Bitcoin spot ETF is approved. #BTC #ETH $BTC $ETH