Institutional Demand Fuels Cryptocurrency Growth Amid Bitcoin ETF Prospect

The flagship cryptocurrency continues to witness steady high demand from institutional investors. Ernst & Young researchers have concluded that the approval of Bitcoin spot ETFs will contribute to the sustained growth of its value. Paul Brody, a representative of the company, noted, “Users who acquire Bitcoin primarily see it as an asset. In the case of Ethereum, people see it as a highly efficient platform in the DeFi sector.”

It’s worth noting that investors are keeping a close eye on the situation surrounding Bitcoin spot funds. Several US asset management firms have submitted relevant applications to the SEC for creating this instrument. However, the US regulator has yet to ratify any of the requests.

In August 2023, Grayscale won a legal case against the SEC, which will reclassify the organization’s Bitcoin trust into a full-fledged ETF. Senior Bloomberg analyst Eric Balchunas highlighted that ARK Invest and 21Shares made amendments to their funds and re-submitted their requests to the SEC.

In his view, this is a positive sign, and there’s a good chance that Bitcoin spot funds could be approved by the US regulator in the near future. However, many experts emphasize that the SEC is attempting to delay the process. It’s widely believed that this investment tool will eventually be ratified, likely in the early months of the next year.

Previously, the Crypto.ru team reported that Microstrategy’s Bitcoin portfolio began generating profits for the first time since the beginning of the summer, driven by the rise in BTC’s value above $30,000. However, numerous technical metrics indicate that the current prices are in overbought territory.