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HomeNewsBitcoin Bounces Back to $44,500 After Flash Crash, Spot ETF Approval Imminent

Bitcoin Bounces Back to $44,500 After Flash Crash, Spot ETF Approval Imminent

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  • Bitcoin (BTC) recovered nearly all its losses from Wednesday’s flash crash, buoyed by reports that the SEC may soon approve multiple spot-based Bitcoin ETF applications.
  • The possibility of spot ETF approval has spurred interest among financial advisors, with 88% expressing interest in buying BTC post-approval, despite only 39% expecting it this year.

Bitcoin’s Optimistic Rebound

The cryptocurrency market has been abuzz with anticipation as Bitcoin (BTC) rebounded to $44,500, shaking off the flash crash from the previous day. This resurgence in Bitcoin’s value is predominantly fueled by the increasing likelihood of the U.S. Securities and Exchange Commission (SEC) approving applications for spot-based Bitcoin exchange-traded funds (ETFs).

Spot ETF Approval: A Turning Point for Bitcoin

The idea of spot-based Bitcoin ETFs, which would hold the actual cryptocurrency rather than futures contracts, has been a subject of much speculation and optimism. Notably, Bloomberg ETF analyst Eric Balchunas indicated that the SEC is in the final stages of reviewing applications, a sentiment echoed by TechCrunch reporter Jacquelyn Melinek, who reported that the SEC is close to approving multiple applications.

Financial Advisors’ Stance on Bitcoin ETFs

A survey by Bitwise and VettaFi revealed a dichotomy in expectations and aspirations among financial advisors regarding spot Bitcoin ETFs. While only 39% anticipate an approval this year, a significant 88% are keen on investing in Bitcoin following such an approval. This discrepancy highlights the eagerness of financial advisors to embrace Bitcoin ETFs, acknowledging their potential to catalyze the cryptocurrency market.

Ethereum’s Ether: The Next Focus

Marcus Thielen, Head of Research at Matrixport, suggested that following the approval of Bitcoin ETFs, investor attention might shift towards Ethereum’s ether (ETH), the second-largest cryptocurrency. With spot-based ether ETF applications likely due around May, Thielen anticipates a notable outperformance of ETH over BTC in the market.

In conclusion, Bitcoin‘s recent price recovery and the growing anticipation of spot ETF approvals signal a potentially transformative moment for the cryptocurrency market. The enthusiasm among financial advisors for post-approval BTC investment, along with the projected shift in focus to Ethereum, underscores the evolving dynamics and burgeoning potential of the digital asset space. As the SEC nears its decision, the crypto community remains attentive to the implications this milestone could have for Bitcoin‘s trajectory and the broader market landscape.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628
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