Bitcoin (BTC) surpassed $30,000 in the pre-dawn hours on Friday morning, extending its weekly gains to over 11%, as bullish sentiment surrounding a possible approval of a spot Bitcoin exchange-traded fund (ETF) gained momentum in the USA.
The tokens formed by the fork of Bitcoin, Bitcoin Cash (BCH) and Bitcoin SV (BSV), rose as much as 26%, leading gains among alternative tokens in a sign of possible irrational exuberance.
Several ETF providers changed their filings over several days last week, while pressuring the U.S. Securities and Exchange Commission (SEC) to soften its stance on Bitcoin ETF approval.
Earlier this week, in a letter to SEC Chairman Gary Gensler, four members of the House Financial Services Committee called on the SEC to listen to the courts and abandon its efforts to block regulatory approval of Bitcoin ETFs.
Elsewhere, hopes of the Grayscale Bitcoin Trust (GBTC) converting into an ETF angered some traders. GBTC is one of the largest institutional Bitcoin holdings, and Grayscale is among several other asset managers that have applied for a Bitcoin spot ETF. Other major companies in the running include BlackRock (BLK), Fidelity and WisdomTree (WT).
Meanwhile, traders said a ruling in Grayscale’s favor could have a positive impact on overall sentiment and even lay the foundation for a broader market rise.
“Bitcoin was also encouraged by possible ETF approval and an increasing number of ETF filings from leading companies,” said Lucy Hu, senior trader at Metalpha, in a message early Friday. “The SEC has chosen not to appeal Grayscale’s decision, and as the deadline for BTC spot ETF applications from institutions like Blackrock approaches, market confidence in ETF approval has increased.”
“(With the) approval of the Bitcoin ETF and the April halving, the crypto market could trigger a very robust bull market,” Hu added.
UPDATE (October 20, 10:47 UTC): Updates headline and story with price jump.