• After consolidating around the $35,000 level for a while, Bitcoin (BTC) rebounded, pushing its price to $36,900.

  • Last month, the SEC issued delay orders against applications from BlackRock, VanEck, Bitwise, WisdomTree, Fidelity, Invesco, and Valkyrie, among others.

  • Developments suggest that a Bitcoin ETF could be approved in the first week of January. As a result, Bitcoin continues to benefit from active investor participation.

Bitcoin price quickly rises in anticipation of approval following comments from ETF analyst: What’s next?

ETF expectations quickly drive Bitcoin up

As the price of Bitcoin rebounded after a recent consolidation at the $35,000 level, pushing up to $36,900, a notable development mentioned by Bloomberg’s ETF strategist James Seyffart brought new hope to the market.

Recently, Seyffart pointed out in his latest report that the U.S. Securities and Exchange Commission (SEC) has opened a window to approve all 12 spot Bitcoin ETFs before November 9. This has undoubtedly injected a new vitality into the Bitcoin market. Last month, the SEC issued a delay order for applications from giants such as BlackRock, VanEck, Bitwise, WisdomTree, Fidelity, Invesco, and Valkyrie. However, according to Seyffart, this is the first time that the window has been reopened after Grayscale won.

It is worth noting that Scott Johnson, a financial lawyer who participated in the discussion, mentioned that "if it is approved this week, it will take at least a month (possibly several months) before the ETF is actually launched. The S-1 is still under review, and there is actually no strict deadline for this process." This shows that although the 19b-4 approval is only the first step, the second step - the approval of the Ministry of Corporate Finance - still needs to be completed. There is no indication that the second step has been completed. This means that there may be a large time gap between the approval and the actual launch of the ETF, which may last for weeks or even months.

However, despite these challenges, market developments suggest that a Bitcoin ETF could be approved in the first week of January. With this light on, Bitcoin continues to benefit from active investor participation. James Seyffart, a strategist at Bloomberg, stressed that there are two key steps to launching an ETF. While 19b-4 approval is only the first step, the second step - approval from the Department of Corporation Finance is equally important. This process may take time, but over time, if all conditions are met, we may see a new Bitcoin ETF officially launched.

From the perspective of industry analysis, the price trend of Bitcoin is closely related to the development of ETFs. When the SEC opens the window to approve new Bitcoin ETFs, it means that more investors will have the opportunity to participate in this market with huge potential. This is an important positive news for Bitcoin, which is currently in a consolidation period. If the ETF can be approved and successfully launched, it will further consolidate Bitcoin's important position in the cryptocurrency market and may drive Bitcoin prices to rise further.

In addition, considering that the S-1 is still under review, it means that the company is still in the final financial review and preparation. Once all conditions are met, the Bitcoin ETF may be approved in the first week of January, which will provide investors with more investment opportunities.

Overall, one of the driving forces behind the Bitcoin rally is a notable development mentioned by Bloomberg's ETF strategist James Seyffart. With more investors having the opportunity to participate in the Bitcoin market, and the approval process of the Department of Corporation Finance, we may see the official launch of the Bitcoin ETF. This will bring more vitality and opportunities to the Bitcoin market and may drive further increases in Bitcoin prices.

BTC price could reach $40,000

Bitcoin’s price rally has been eye-catching lately. Traders are opening new long positions, while on-chain data provider Santiment notes that Bitcoin has risen an impressive 37% in just two months. During this rally, the ratio of traders opening bullish positions (relative to bearish positions) reached a three-month high. Total open interest on exchanges has also increased significantly, reaching a level of $7.2 billion.

First, we need to understand the basic logic behind the rise in Bitcoin prices. As a digital currency, the value of Bitcoin is mainly determined by market supply and demand. When traders are optimistic about the future price of Bitcoin, they will choose to open a long position, that is, buy Bitcoin, expecting its price to rise. This behavior drives the rise in Bitcoin prices.

However, this is only one aspect of the rise in Bitcoin prices. Another noteworthy aspect is the sharp increase in the total amount of open interest on exchanges. Open interest usually reflects the balance of power between long and short positions in the market. When the total amount of open interest increases, it usually means that the power of long positions (i.e. bullish on Bitcoin's rise) in the market is greater than the power of short positions (i.e. bearish on Bitcoin's fall). This also supports the view that Bitcoin prices are rising.

However, we cannot ignore the impact of enthusiasm and fear of missing out (FOMO). When market sentiment is high, people tend to choose to enter the market because of the fear of missing out, which will also drive prices up. But this sentiment may fade over time, so even if enthusiasm and FOMO fade, as long as the market supply and demand relationship still supports the rise of Bitcoin prices, Bitcoin may still continue its upward momentum.

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