Bitcoin Surges as Enthusiasm Grows Amid SEC ETF Approval Prospects

reportcryptos.com
3 Min Read

Bitcoin surges past $43k as Grayscale leadership shakeup fuels spot ETF approval optimism.

Bitcoin has hit a high of $43,210 in the last 24 hours, recording a 6.6% gain from the low of $40,530 witnessed two weeks ago. Also, CoinMarketCap data shows Bitcoin’s 24-hour trading volume is up 7.12% compared to the value recorded the previous day.

Notably, a few days ago, Bitcoin had rallied to $44,367 after the two-week dip. This gradual momentum recovery in the Bitcoin market aligns with the positive sentiment surrounding the potential U.S. SEC endorsement of a spot Bitcoin exchange-traded fund (ETF).

Intensifying Optimism for Spot Bitcoin ETF

Reportedly, investors’ anticipation for a Bitcoin spot ETF intensified following pivotal leadership shakeups at Grayscale Investments, home to the largest Bitcoin trust, which is seeking approval to convert it into an ETF. 

On Tuesday, Grayscale announced the resignation of Barry Silbert from his position as chairman. Silbert, who also served as the founder and CEO of the parent company Digital Currency Group, will be succeeded by chief financial officer Mark Shifke. 

Also, Mark Murphy, the President of DCG, has resigned from the firm’s board. This development precedes the looming January 10 deadline for the U.S. SEC to consent to the first Bitcoin spot ETF. 

According to Hayden Hughes, co-founder of Alpha Impact, the departure of Silbert from the chairman role is being perceived as a positive indicator of Bitcoin demand.

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He added that the SEC may consider allowing other Grayscale products to be listed as ETFs. This expectation is fueling institutional interest in Grayscale Bitcoin Cash Trust. 

In October, New York Attorney General Letitia James filed a lawsuit against DCG, headed by Barry Silbert. The lawsuit alleged that DCG engaged in fraud, affecting at least 29,000 individuals from New York, with losses exceeding $1 billion.

Additionally, James accused Silbert of attempting to conceal substantial losses, a charge that both DCG and Silbert have vehemently denied.

Meanwhile, following this reorganization, Bloomberg data shows the Grayscale Bitcoin Cash Trust experienced an 18% surge in trading volume. It particularly mentioned that the figure surpassed the six-month daily average by more than seven times. 

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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