Journalist
Posted:
- Grayscale is pressuring the SEC to make a decision on the spot Bitcoin ETF filing in a new letter.
- Short-term demand for Bitcoin remains low as the market goes through a period of uncertainty.
Spot Bitcoin ETFs are undoubtedly one of the hottest topics in the cryptocurrency market. This is because they could potentially trigger the next bull market. They represent much more to the companies behind them.
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Grayscale is one of the companies that has applied for Bitcoin ETF approval. The first companies to receive approval will benefit from robust demand from institutions.
In addition, they can potentially generate billions in revenue from fees. This partially summarizes why companies like Grayscale are eager to be among the first to receive Bitcoin ETF regulatory approval.
Why Grayscale will soon get the green light
Grayscale was extremely excited about this issue, as evidenced by the latest announcement. The company recently announced that its legal team has done just that submitted a letter about the case. The letter notes that the SEC has already exceeded three times the length allowed by law for a filing.
As noted in the letter, $GBTC’s “Rule 19b-4 filing is now pending nearly three times the time allowed 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 is aimed at making the SEC more accountable. This was after the US regulator delayed decisions on spot BTC ETFs. It’s only a matter of time before the initial approval comes, especially with Grayscale putting pressure on the SEC.
Bitcoin holders are growing
Bitcoin has faced directional headwinds in recent weeks. However, the number of addresses with BTC has been steadily growing and reportedly just hit a new all-time high. About 4.47 million addresses now hold at least 0.1 Bitcoin.
📈 #Bitcoin $BTC Number of addresses with 0.1+ coins just reached an ATH of 4,472,021
View statistics:https://t.co/hZY8dBLpzX pic.twitter.com/DGPptzvOrh
— Glassnode Alerts (@glassnodealerts) September 5, 2023
This suggested that there was still some demand for Bitcoin at current levels, especially after the August discount. However, the market is still under a cloud of uncertainty, mainly due to the possibility of an interest rate hype during the next FED announcement.
Most of BTC’s demand has been stifled by prospects of another crash.
How much is 1,10,100 BTC worth today?
The level of open interest for Bitcoin remains low due to the concerns mentioned above. At the time of writing, open interest had dropped to March 2023 levels. BTC’s estimated leverage ratio also confirmed a suppressed need for leverage due to its higher risk factor.
Source: CryptoQuant
The low estimated leverage ratio confirmed that Bitcoin traders were still cautious in the short term. This until the prevailing market conditions provide more clarity.