Bitcoin Demand, Fees Soar Due to Spot ETF Hype
The anticipation that the United States will soon authorize a spot Bitcoin exchange-traded fund (ETF) has boosted demand for the leading Bitcoin and...
- The anticipation of a spot Bitcoin exchange-traded fund (ETF) in the United States has increased demand for Bitcoin and caused a surge in transaction fees.
- On November 16, the Bitcoin blockchain received $11.6 million in fees, with the mean transaction fee increasing by 113% from the previous day and 746% from last year.
- Bitcoin is trading above its bear market range and near its highest level in eighteen months, currently at $36,407.
- Investment manager BlackRock registered for a spot BTC ETF with the SEC in June, leading to a rise in Bitcoin's price.
- Other asset managers, including Fidelity, ARK Invest, and WisdomTree, have submitted similar proposals, with the SEC discussing adjustments and postponing definitive deadlines until January 2024.
- Amendments to the proposals have been submitted by WisdomTree, ARK, 21Shares, Valkyrie, Bitwise, and VanEck, potentially addressing the SEC's concerns.
- A spot Bitcoin ETF allows investors to track the price of Bitcoin without purchasing it on a cryptocurrency exchange, and institutional investors are expected to allocate capital towards it.
- Bloomberg analysts estimate a 90% probability of ratification for all proposals in the same batch in January.
The article overall has a positive sentiment, highlighting the anticipation and potential positive impact of a spot Bitcoin ETF on the price of Bitcoin.