Crypto Industry Buzzing Following Possible Approval of Bitcoin ETF
The United States District Court has issued an order directing the U.S. SEC to consider the application for a Spot Bitcoin ETF by Grayscale Investments, reaffirming the court’s decision on August 29. The U.S. SEC has not filed an appeal.
Eric Balchunas, an analyst at Bloomberg ETF, revealed that BlackRock has listed the name of its Bitcoin ETF as “IBTC” with the Depository Trust & Clearing Corporation (DTCC), which is a step before trading on the Nasdaq market. This suggests that it may soon receive approval from the U.S. SEC.
Paul Grewal, Coinbase’s Chief Legal Officer, is confident that a Spot Bitcoin ETF will receive approval from the U.S. SEC by this year, following collaboration between investment management companies closely working with the U.S. SEC.
JPMorgan analysts anticipate that the approval of a Spot Bitcoin ETF will likely occur within the next few months. This expectation arises from the U.S. SEC’s decision not to challenge the court’s ruling in Grayscale’s case, and they anticipate multiple Spot Bitcoin ETF approvals simultaneously.
Grayscale Investments has submitted a new application to the U.S. SEC to register Grayscale Bitcoin Trust as a security on the U.S. stock market, following a previous court order that prevented the establishment of Grayscale Investments’ Bitcoin ETF. The GBTC discount has significantly narrowed to approximately -13% after previously reaching nearly -50%.
The U.S. SEC has announced the dismissal of all charges against Brad Garlinghouse, CEO of Ripple, and Chairman Chris Larsen, after a lawsuit was filed against Ripple in December 2020 regarding the sale of XRP tokens, which were alleged to be securities.
CryptoQuant data shows that more than 33,500 BTC has been moved from exchanges to cold wallets in the past week, resulting in the lowest Bitcoin reserves on exchanges in several years. This indicates long-term investments.
Tesla reported in its Q3 2023 financial statement that it still holds Bitcoin worth 312,000,000 US dollars. The company did not buy or sell any Bitcoin during this quarter, although the value of the Bitcoin holdings decreased by 9 million dollars compared to Q2 of this year
The Bitcoin Dominance Index has increased to over 49%, marking its highest point in over two years. BTC.D has risen from 38% at the beginning of this year to 48.85% on October 21, which is the highest level since April 2021, and it has delivered an 80% return on investment.
Nansen’s analysis suggests that Solana is poised for a strong recovery in 2023, with the Total Value Locked (TVL) in Solana’s DeFi ecosystem increasing by 32% from the previous quarter. Meanwhile, Solana’s transaction fees remain the most stable and cost-effective among all networks.
Uniswap will start charging a 0.15% swap fee for certain tokens, with the aim of using it for the development of new features such as mobile applications. Developers argue that this fee is still considered low compared to the industry average.
Weekly Technical Analysis: 24-30 October 2023
BTC surged by over 15%, breaking through a crucial resistance level at $31,500 and touching the $35,000 mark. However, the RSI has entered the overbought zone, indicating a potential short-term pullback in prices. If it manages to hold above $31,500, it could present a buying opportunity as the overall trend has turned bullish.
ETH has made a strong upward move, but for a full-fledged uptrend reversal, it must break through the crucial resistance at $1,900 first. This would mark an exit from the significant sideways range at last. Meanwhile, there is support at $1,700. If the price manages to hold strong during a pullback, it could present a buying opportunity.
Aave Protocol (AAVE)
AAVE has surged by an impressive 38.5% over the past week, marking a full-fledged comeback. The trading strategy here involves buying when the price dips. The initial buy zone is at the level of 2,950 Baht, with the aim of selling for short-term gains at the resistance on 3,300 Baht. Alternatively, it’s viable for long-term profit potential.
SOL has surged by an impressive 37.8% in the past week. The primary trend has the potential to turn bullish after breaking through a key resistance at 1,020 Baht, which can now be used as the support level. If the uptrend continues, there is a short-term resistance for profit-taking at 1,200 Baht.
Trading and Investment Considerations For The Week
The market has regained momentum as various news sources indicate a possible approval of a Bitcoin ETF in the near future. This has shifted market sentiment towards profit-taking opportunities. The crucial turning point was Bitcoin’s ability to break through the significant resistance at $31,700.
Meanwhile, standout performers among altcoins include Solana, Chainlink, AAVE, FTM, and Thorchain. These could be considered as investment options. However, it’s worth noting that if news of a Bitcoin ETF approval materializes, there might be a “Sell On Fact” scenario. Such a case could present opportunities for short-term, mid-term, and long-term investments.
This Wednesday, October 25th, the Chairman of the U.S. Federal Reserve is scheduled to discuss monetary policy. On Thursday, October 26th, the U.S. third quarter GDP data is set to be released, with an expected growth rate of 4.2% compared to the previous quarter’s 2.1%. Keep an eye on 10-year U.S. Treasury Bond Yields, as they recently touched 5% before decreasing. Continued decreases in yields could support investments in other asset classes.
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