Bitcoin Soars Past $44K Amid Hopes for Spot BTC ETF Approval

• Bitcoin Recovers Amid Anticipation of ETF Approval
• Market Rebound Despite ETF Concerns
• Excitement Around Spot-Based Bitcoin ETFs
• Shift of Investor Focus to Ethereum

Bitcoin Recovers Amid Anticipation of ETF Approval

Bitcoin$42,260 -0.64% (BTC) witnessed recovery to $44,500 on Thursday, almost negating losses from Wednesday's flash crash. Investors persistently remained hopeful of an imminent U.S. spot BTC exchange-traded fund (ETF) approval. The majority of market observers anticipate the U.S. Securities and Exchange Commission (SEC) to approve applications for the same, potentially as early as Friday.

Market Rebound Despite ETF Concerns

Contrary to a Matrixport report on Wednesday cautioning about a potential rejection that might have instigated a brief 10% bitcoin drop, the market outlook remains positive. Bloomberg ETF analyst Eric Balchunas indicated during the U.S. afternoon that the SEC was providing final comments on the applications, with prospective issuers expected to update their filings accordingly.

TechCrunch reporter Jacquelyn Melinek later revealed that the SEC is likely to approve multiple applications. She cited sources extremely close to the matter. Bitcoin was up 4% over the past 24 hours and trading at $44,500, nearly wiping out the previous day's dip below the $41,000 mark.

Excitement Around Spot-Based Bitcoin ETFs

Spot-based bitcoin ETFs that hold the underlying asset directly have sparked enthusiasm for the crypto market since Wall Street heavyweight BlackRock filed paperwork in June for a U.S. listing, a move soon mirrored by numerous other applicants. The market perceives these instruments as superior to futures-based offerings already listed, with the expectation that they will significantly attract inflows into the largest cryptocurrency.

However, a survey by Bitwise and VettaFi released on Thursday interestingly discovered that only 39% of financial advisors anticipate a spot BTC approval this year. The study indicated that 88% of these advisors deem the spot ETF as a major propellant and express interest in purchasing bitcoin post-approval. Bitwise is among the asset managers with spot bitcoin ETF applications awaiting the SEC's decision.

Shift of Investor Focus to Ethereum

Markus Thielen, Matrixport research head and author of Wednesday's report suggesting a potential denial or deferred approval, clarified in a podcast interview that he ultimately expects the U.S. regulatory body to permit spot-based ETFs. However, he anticipates lower bitcoin prices in the near future due to technical indicators highlighting a declining uptrend.

Thielen implied that post the approval of spot BTC ETFs, investors are likely to swiftly shift their attention to Ethereum$2,315 -2.42%'s ether (ETH), the second-largest cryptocurrency. The SEC's decision on spot-based ether ETF applications is speculated to be due around May. We would expect then we're going to see some large outperformance of ETH over BTC, Thielen forecasted.

Edited by Jonathan Stoker