Yesterday, BlackRock submitted a revision of its spot Bitcoin ETF proposal driving gains in the cryptocurrency market, particularly Bitcoin's price. The revision includes a key change to cash redemptions, a move aimed at aligning with the preferences of the US Securities and Exchange Commission (SEC).
This amendment is seen as a strategic concession to improve the likelihood of the fund's approval. After BlackRock revised the application other players followed suit. ARK Invest and WisdomTree have also revised their ETF filings to comply with the cash redemption model. This model is preferred by the SEC over in-kind redemptions, which involve non-monetary transactions like Bitcoin. The shift to a cash-only model addresses the SEC's concerns about investor safety and market manipulation, making the approval of such ETFs more likely. The anticipation of the SEC's approval of spot Bitcoin ETFs has created a bullish sentiment in the cryptocurrency market, particularly for Bitcoin. The price of Bitcoin has surged.
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As a result, Bitcoin broke out from levels below 41,000 USD to over 43,000 USD. The rise in the largest cryptocurrency also pulled up the rest of the market. Ethereum surpassed 2,240 USD, gaining even more than Bitcoin. Looking at the chart, a decisive reaction to the support level around 40,000 USD, which was tested a few days ago, should be noted. If the bullish sentiment continues, we might see a retest of the highs at the 44,000 USD level. However, as long as the Bitcoin price fluctuates within the 41,000-44,000 USD range, we can talk about consolidation. Source: xStation 5
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