Bitcoin (BTC) is showcasing resilience this week, reaching an intra-day high of $28,516, even in the face of ongoing macroeconomic challenges in the United States that have been dampening investor confidence. The notable stability in BTC’s price could be influenced by the increasing involvement of institutional players and the growing positive interest of institutional investors in Bitcoin.
On October 17, Fidelity Investments, a major asset management institution, made amendments to its proposed spot Bitcoin ETF with the Securities and Exchange Commission (SEC). The ETF, named the Wise Origin Bitcoin Trust, has been updated to detail Fidelity’s plans for securing customers’ Bitcoin in custody accounts, shedding light on the risks associated with the unpredictable regulatory landscape of cryptocurrencies.
Fidelity is following the lead of other prominent institutions like ARK Invest and Invesco, both of which have also made adjustments to their spot Bitcoin ETF filings. ARK Invest refiled on October 11, while Invesco followed suit on October 13.
These moves suggest an ongoing conversation between ETF applicants and the SEC, a sentiment echoed by ARK Invest CEO Cathie Wood, who noted on ETF Edge this week,
“We responded to the SEC request for information surrounding our Bitcoin filing. The SEC chose to engage, which is a change in behavior.”
Wood’s statement, coupled with Fidelity’s filing, is fostering renewed optimism in the Bitcoin market. Grayscale’s Bitcoin investment vehicle, Grayscale Bitcoin Trust (GBTC), which shares similarities with an ETF, is experiencing its lowest net asset value (NAV) premium discount since December 9, 2021.
On October 14, Grayscale secured a victory against the SEC when reports suggested that the commission would not appeal a ruling by the U.S. Court of Appeals on August 29, meaning their ETF would now undergo review.
Despite this positive momentum, the SEC persists in delaying the approval of a Bitcoin ETF. Some analysts speculate that when approval is granted, it could potentially inject at least $600 billion in new demand for Bitcoin. Larry Fink, the CEO of BlackRock, commented on Bitcoin during an October 16 interview on Fox Business, attributing the recent rally to a “flight to quality” amidst global uncertainties, including the Israeli conflict and terrorism. Fink emphasized that people are turning to assets like Treasuries, gold, or crypto as a safe haven in such times.