Bitcoin Rebounds Above $44K as Spot BTC ETF Approval Looks Increasingly Likely
BTC recovered almost all losses from Wednesday's flash crash amid reports that a spot ETF approval could be imminent.
Bitcoin Rebounds Amid Spot BTC ETF Approval Prospects
Bitcoin (BTC) rebounded to $44,500 as investors remained optimistic about a potential approval of a U.S. spot BTC exchange-traded fund (ETF). The flash crash on Wednesday did not deter investors, as reports suggested that the approval could be just around the corner.
Despite a Matrixport report warning about a possible rejection, analysts and observers still expect the U.S. Securities and Exchange Commission (SEC) to approve the applications, with the decision possibly coming as soon as Friday. Bloomberg ETF analyst Eric Balchunas revealed that the agency was providing final comments on the applications.
TechCrunch reporter Jacquelyn Melinek further added that multiple applications are likely to be approved soon, citing sources close to the matter. Currently, BTC is up 4% over the past 24 hours, trading at $44,500 and recovering most of yesterday's decline.
Financial Advisors Remain Divided on BTC ETF Approval
A survey conducted by Bitwise and VettaFi showed that only 39% of financial advisors expected a spot BTC ETF approval this year. However, the survey also revealed that 88% of these advisors consider the spot ETF as a significant catalyst and would be interested in buying bitcoin after its approval. Bitwise, among other asset managers, is waiting for the SEC's decision on spot bitcoin ETF applications.
Market experts believe that once the green light is given for spot BTC ETFs, investor focus will shift to Ethereum's ether (ETH). Markus Thielen, the research head at Matrixport, predicts that the decision on spot-based ether ETF applications will likely come around May. He expects ether to outperform bitcoin significantly.
Matrixport Research Head Forecasts Ether's Outperformance
In a podcast interview with CoinDesk, Markus Thielen elaborated on his expectation for spot BTC ETF approval and its impact. While he anticipates lower bitcoin prices in the coming weeks due to faltering technical indicators, he remains confident that the SEC will eventually allow spot-based ETFs. Thielen also predicted that once approved, investor attention will quickly shift to Ethereum's ether, which he believes will outperform bitcoin significantly.
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