BTC struggles as Grayscale pushes for an ETF approval. Assessing…
- Grayscale pressures the SEC to make a decision regarding its spot Bitcoin ETF filing in a new letter.
- Bitcoin’s short-term demand remains low as the market wades through a period of uncertainty.
Spot Bitcoin ETFs are no doubt one of the hottest topics in the cryptocurrency market. This is because they could potentially trigger the next bull market. They represent much more for the companies behind them.
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Grayscale is among the companies that have filed for a Bitcoin ETF approval. The first companies to secure approval will get to tap into robust demand from institutions.
Additionally, they get to earn potentially billions in revenue generated from fees. This partly sums up why companies like Grayscale are eager to be among the first to secure a Bitcoin ETF regulatory approval.
Why Grayscale might get the green light soon
Grayscale has been particularly keen on the matter, as revealed in its latest announcement. The company recently disclosed that its legal team has submitted a letter over the matter. The letter notes that the SEC has already surpassed three times the length that it is legally permitted to take for a filing.
As the letter notes, $GBTC’s “Rule 19b-4 filing has now been pending for nearly three times the length permitted for Commission action under Section 19(b) of the Exchange Act.” (2/3)
— Grayscale (@Grayscale) September 5, 2023
The digital asset investment company’s latest aggressive push aims to get the SEC to be more accountable. This was after the U.S. regulator had been delaying the decisions on spot BTC ETFs. It is only a matter of time until the first approval happens, especially now that Grayscale is pressuring the SEC.
Bitcoin holders are growing
Bitcoin has been facing directional headwinds in the last few weeks. However, the number of addresses holding BTC has been steadily growing and it reportedly just reached a new all-time high. Roughly 4.47 million addresses now hold at least 0.1 Bitcoin.
— glassnode alerts (@glassnodealerts) September 5, 2023
This suggested that there was still some demand for Bitcoin at its current level, especially after its August discount. However, the market is still under a cloud of uncertainty especially due to the possibility of interest rate hype during the next FED announcement.
The bulk of BTC’s demand has been suppressed by the prospects of another crash.
How many are 1,10,100 BTCs worth today
The level of Bitcoin open interest remains low on account of the aforementioned concerns. Open interest, at press time, was down to March 2023 levels. BTC’s estimated leverage ratio also confirmed a suppressed appetite for leverage on account of the higher risk factor.
The low estimated leverage ratio confirmed that Bitcoin traders were still leaning on the side of caution in the short term. This is until prevailing market conditions offer more clarity.