Bitcoin Dips Below $46K as Ether & GBTC Soar on SEC's Spot Bitcoin ETF Approval

• Bitcoin Sees Volatility Following SEC's Approval of BTC ETFs
• Ether and Grayscale Bitcoin Trust Surge
• Stability Seen in Coinbase and Bitcoin Miners
• Anticipation for First U.S. Bitcoin ETFs Boost Crypto Market
• Focus Shifts to Demand for New Investment Vehicles

Bitcoin Sees Volatility Following SEC's Approval of BTC ETFs

In a period marked by significant volatility, Bitcoin$42,260 -0.64% (BTC) rose to $46,200 on Wednesday, then decreased by almost 2%. This fluctuation came as the U.S. Securities and Exchange Commission (SEC) gave its approval to spot-based BTC exchange-traded funds (ETFs), a groundbreaking ruling for the digital asset sector.

Earlier in the day, the largest and first-ever cryptocurrency fell from $46,500 to $45,000 once the Cboe exchange pulled back a filing related to spot BTC ETFs, causing concern among investors. This occurred after Tuesday's wild price fluctuations, triggered by a compromised official X (previously known as Twitter) account posting a false approval announcement.

Ether and Grayscale Bitcoin Trust Surge

Ether (ETH), the second-largest crypto by market capitalization, soared past $2,500 by 10%, marking its first time to reach such a level in 20 months. This surge comes as attention shifts towards spot-based ether ETF applications already submitted to the SEC.

Meanwhile, the Grayscale Bitcoin Trust (GBTC), currently the largest closed-end bitcoin fund permitted to transition into an ETF, reached $40 per share. This is the highest price it has seen since December 2021, according to TradingView data.

Stability Seen in Coinbase and Bitcoin Miners

Despite the turbulence in the market, Coinbase (COIN), a digital asset exchange that provides a vital custody service for multiple bitcoin ETF issuers, remained steady at about $151. Bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) also maintained their positions.

Anticipation for First U.S. Bitcoin ETFs Boost Crypto Market

The expectation of the first U.S. bitcoin ETFs capable of holding the underlying asset has had a positive impact on the crypto market since Wall Street powerhouse BlackRock submitted the required documents in June to establish one. This move was promptly followed by other applicants.

These investment vehicles are seen as superior to the futures-based offerings currently listed. Crypto enthusiasts are optimistic that they will draw substantial inflows to the leading cryptocurrency.

In spite of a decade of unsuccessful attempts to list spot bitcoin ETFs in the U.S., the majority of market observers strongly anticipated regulatory approval this time around. This belief stemmed from BlackRock's history of successful applications and asset manager Grayscale's legal triumph over the SEC in August.

Focus Shifts to Demand for New Investment Vehicles

Now, the focus shifts to the level of demand these investment vehicles will draw once trading commences.

Edited by Jonathan Stoker