The prospect of a spot Bitcoin (BTC) exchange-traded fund (ETF) soon being approved in the United States has increased demand for the major cryptocurrency, leading to higher transaction fees.
According to CryptoFees statistics, fee payments on the Bitcoin blockchain reached $11.6 million on November 16th. As of this writing, the average trading fee is $18.69, an increase of 113% from the previous day and 746% from a year ago, according to YCharts data.
According to market analysis from Cointelegraph, Bitcoin remains near 18-month highs and above its bear market trading range. At the time of writing, the cryptocurrency was trading at $36,407, up 0.58% in the past 24 hours.
Bitcoin prices have been on the rise since Wall Street investment management firm BlackRock filed for a Spot BTC ETF with the Securities and Exchange Commission in June. After BlackRock’s filing, several other large U.S. asset managers submitted similar proposals, including Fidelity, Ark Invest, and WisdomTree.
#bitcoin officially reversed ETH daily fees for the first time in three years. pic.twitter.com/2G3t6j64TP
— ₿ Isaiah⚡️ (@BitcoinIsaiah) November 17, 2023
The SEC appears to be consulting with companies on adjustments to the proposal, but no decisions have been made yet, with the final deadline pushed back to January 2024. On November 16, WisdomTree amended its Form S-1 with regulators, which subsequently made similar amendments. ARK, 21Shares, Valkyrie, Bitwise, VanEck.
The revised version may be a response to concerns raised by the SEC, said Eric Balchunas, senior ETF analyst at Bloomberg. “So ARK received the SEC’s comments, addressed all of them, and now [the] the ball comes back [the] It’s the SEC courtroom,” Balciunas said. “[In my opinion] Good sign, solid progress. ”
Spot Bitcoin ETF is an investment fund that reflects the price of Bitcoin. The “spot” aspect means the fund directs the purchase of Bitcoin as the underlying asset. This will allow investors to participate in the Bitcoin market through regular brokerage accounts. This is how you can be exposed to BTC price fluctuations without having to buy his BTC on a cryptocurrency exchange, for example.
As a result, Spot Bitcoin ETFs are expected to attract institutional investor capital, which could result in Bitcoin prices reaching new highs in the coming months. According to Bloomberg analysts, there is a 90% chance that all proposals from the same batch will be approved in January.
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