Bitcoin Surges to Almost $28K as Optimism Builds for ETF Approval

Market participants are displaying confidence in a development that has raised hopes for the approval of a spot bitcoin ETF in the United States.

In the early hours of Monday in Asia, Bitcoin (BTC) witnessed a substantial surge of around 4.5%. This surge was fueled by the optimistic belief that a bitcoin exchange-traded fund (ETF) could potentially receive regulatory clearance in the upcoming months, igniting a surge of positive sentiment.

Bitcoin was hovering just below the $28,000 threshold, completely reversing all losses incurred in the preceding week. This upswing seemed to be a direct extension of the positive reaction observed on Friday after the U.S. Securities and Exchange Commission (SEC) chose not to contest a recent ruling related to Grayscale.

According to a confidential source, it appears that the SEC has decided against challenging a court decision that allowed Grayscale to convert its widely popular bitcoin trust into a more investor-friendly exchange-traded fund. This development potentially paves the way for the inaugural bitcoin ETF to debut in the U.S.

Certain traders have noted that this decision enhances the probability of the Grayscale Bitcoin Trust (GBTC) undergoing a transformation into a more appealing ETF.

Market analyst Simon Peters at eToro chimed in on the matter, affirming:

 "The news in the U.S. regarding Grayscale’s ETF application holds the potential for significant implications for the bitcoin market. The narrative of spot price ETF approval has been a prevailing theme in the bitcoin market for quite a few months now." He went on to add, "As the barriers to approval diminish, investor optimism is on the rise, suggesting we might witness these products in the market sooner than expected."

Read more: Revitalizing Gemini Earn: DCG and Genesis Unveil Ambitious Remuneration Plan for Struggling Customers