Bitcoin Price Stagnates at $30K as ETF Applicants Resubmit Applications in Asian Market
The price of Bitcoin has remained stagnant at around $30,000 amidst resubmitted applications for Bitcoin exchange-traded funds (ETFs) in the Asian market. Bitcoin opened the trading week in Asia at $30,654, according to CoinDesk data, while ETH was at $1,954.
The crypto market faced difficulties last week when the U.S. Securities and Exchange Commission (SEC) deemed current bitcoin ETF filings “inadequate,” resulting in price drops. Some issuers have re-filed, mentioning Coinbase as their market surveillance partner.
According to BitBull Capital CEO Joe DiPasquale, Bitcoin could test a support zone ranging from $27K to $29K. He suggests that such price movement will likely result in deeper declines in altcoins.
Spot Bitcoin ETF Approval
The approval of the first Bitcoin ETF may not automatically trigger a bullish trend, despite the potential benefits it offers in terms of accessibility for individual investors and mutual funds. The focus is on seeking approval for a spot-based Bitcoin ETF, which involves the direct purchase of BTC instead of relying on futures-based ETFs.
However, the United States Securities and Exchange Commission (SEC) has consistently rejected all Bitcoin ETF applications, including the recent denial of the VanEck Bitcoin Trust on March 10, 2023.
Potential Solution for GBTC’s Discount Issue
The SEC’s reasoning for rejection has often been the lack of a “comprehensive surveillance-sharing agreement with a regulated market of significant size related to spot Bitcoin.” Regulators are cautious about introducing a Bitcoin product that is both fair and transparent.
Some investors are now considering whether introducing spot Bitcoin ETFs by companies like ARK Invest and BlackRock could address the issues faced by Grayscale’s Bitcoin Trust (GBTC). GBTC is an investment vehicle with shares traded on the stock exchange, but it has experienced a persistent “discount” compared to the actual value of the underlying Bitcoin it holds.
Interestingly, after BlackRock announced its ETF filing, the GBTC “premium” (the difference between its share price and the value of its underlying Bitcoin) experienced an increase, reaching its highest levels in months.
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In conclusion, the price of Bitcoin has remained stagnant at $30,000 as ETF applicants resubmit their applications in the Asian market. The approval of a spot-based Bitcoin ETF could potentially address the issues faced by Grayscale’s Bitcoin Trust and bring more transparency to the market. However, the SEC has been consistently rejecting Bitcoin ETF applications, making it uncertain when a Bitcoin ETF will be approved. For more cryptocurrency news and updates, visit Uber Crypto News.