Bitcoin surged to a two-month high, reaching $28,817, following amendments to a spot bitcoin ETF filing by Fidelity.
The bullish market sentiment was fueled by this development, which suggests active discussions between major firms and regulators. Bitcoin’s price gained 2.8% in the past 24 hours and extended its weekly rally to nearly 7%.
Amendments Signify Active Communication
The amendments to spot bitcoin ETF filings indicate that the U.S. Securities and Exchange Commission (SEC) is engaging in active discussions with relevant parties. Fidelity’s move, in particular, underscores open communication lines between financial institutions and regulatory authorities.
Fidelity’s Amendment to Wise Origin Bitcoin Trust
Asset management giant Fidelity amended its proposed spot bitcoin ETF, the Wise Origin Bitcoin Trust, with the SEC. The amendments detail how Fidelity plans to protect customers’ bitcoin in custody accounts and disclose potential risks associated with the evolving regulatory landscape of cryptocurrencies.
Fidelity’s action follows similar moves by Ark Invest and Invesco, who also recently made amendments to their spot bitcoin ETF filings.
Positive Impact on Market Sentiment
These amendments suggest that prospective ETF providers are actively engaged in discussions with the SEC to meet regulatory requirements. This has generated positive sentiment among traders and market observers.
The anticipation of a spot bitcoin ETF approval has the potential to significantly increase the overall market capitalization, with some estimating it could add at least $1 trillion to the current $1.1 trillion market.
Market Impact and Analyst Predictions
Speculation surrounding the approval of a spot bitcoin ETF earlier in the week led to a nearly 10% jump in bitcoin’s price. This surge illustrated the strong investor interest in the cryptocurrency market. Despite the rumor turning out to be false, bitcoin continued its price ascent.
Market analysts also are optimistic about bitcoin’s near-term performance, with some predicting it could reach $29,400 in the coming days. The market’s focus remains on bitcoin, and its current positions near $28,500 suggest a bullish dominance that could drive the price towards the $29.4K level.