- Fidelity has reapplied for Bitcoin ETF, signaling a shift in market sentiment.
- The price and number of holders rose as miners faced selling pressure.
In the past month, many funds, such as BlackRock, have shown interest in Bitcoin [BTC] by filing for Spot ETFs, which generated massive bullish sentiment for the king coin.
Read Bitcoin [BTC] Price forecast 2023-2024
Putting the ‘fun’ in funds
For context, ETFs are investment vehicles that aim to provide investors with an accessible and regulated way to gain exposure to the asset in question. These ETFs track prices and allow investors to buy and sell stocks on traditional exchanges.
Their approval would bring significant benefits to Bitcoin and the wider market.
However, in addition to BlackRock, other funds are also interested in Bitcoin. Fidelity, a major asset manager, recently resubmitted its proposal for a BTC ETF. In 2021, Fidelity initially filed with the US SEC to launch the Wise Origin Bitcoin Trust.
However, the SEC rejected this pursuit in 2022.
This refiling suggests that the legislative and governing bodies may have taken a friendly look at the royal coin and related financial instruments. In addition, Bitcoin ETFs, which are traded on regulated exchanges, would provide investors with a seamless and easy way to enter and exit their positions.
This increased liquidity can help reduce price volatility, narrow bid-ask spreads and improve overall market stability.
How is Bitcoin doing?
At the time of writing, BTC was trading at USD 30,800. The price had increased significantly in recent days. Along with the rising price, the total number of holders of Bitcoin also increased.
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Despite all these positive developments, however, the weighted sentiment remained negative. This indicated that the number of negative comments about Bitcoin in the social field outnumbered the number of positive comments.
Source: Sentiment
This drop in sentiment may be a cause for concern for holders. Another factor that could negatively affect BTC is increasing selling pressure on miners. Recent data indicated that miners were sending record amounts of the king coin to exchanges.