Bitcoin (BTC) continues to display strength in its price this week, reaching an intra-day high of $28,516, despite ongoing macroeconomic challenges in the United States that are weighing on investor sentiment. This stability in BTC’s price may be attributed to the increasing institutional activity and growing interest among institutional investors in Bitcoin.
In a recent development, Fidelity Investments, a prominent asset management institution, made amendments to their proposed spot Bitcoin ETF filed with the Securities and Exchange Commission (SEC) on October 17. The ETF, called the Wise Origin Bitcoin Trust, provided updated information on how Fidelity plans to safeguard customers’ Bitcoin in custody accounts and highlighted the risks associated with the volatile regulatory landscape of cryptocurrencies.
Fidelity’s move follows similar actions by other major institutions such as ARK Invest and Invesco, which also amended their spot Bitcoin ETF filings. ARK Invest refilled on October 11, while Invesco refilled on October 13. These actions indicate an ongoing dialogue between ETF applicants and the SEC, as confirmed by ARK Invest CEO Cathie Wood during an interview on ETF Edge. Wood stated, “We responded to the SEC request for information surrounding our Bitcoin filing. The SEC chose to engage, which is a change in behavior.”
The combined effect of Wood’s statement and Fidelity’s filing has sparked renewed optimism in the Bitcoin market. Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), which functions similarly to an ETF, has reached its lowest net asset value (NAV) premium discount since December 9, 2021.
Grayscale also achieved a victory against the SEC on October 14 when the commission decided not to appeal a ruling by the U.S. Court of Appeals on August 29. This means that Grayscale’s ETF will now undergo a review process.
Despite these positive developments, the SEC continues to delay the approval of Bitcoin ETFs. However, analysts anticipate that once approval is granted, it could potentially generate at least $600 billion in new demand for Bitcoin. BlackRock CEO Larry Fink discussed Bitcoin during an interview on Fox Business, stating, “I think the rally is about a flight to quality, with all the issues around the Israeli war now, [and] global terrorism. And I think there are more people running to a flight to quality — whether that is in Treasurys, gold, or crypto, depending on how you think about it.”
It is important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research before making any decisions involving investments or trading.