Bitcoin rebounds to over $44,000 ─ Chance of approval for spot ETF increases | CoinDesk JAPAN

• Bitcoin has recovered almost all of its losses from the flash crash on the 3rd, amid reports that approval for a physical ETF is imminent.
• According to the survey, only 39% of financial advisors expect a Bitcoin spot ETF to be approved this year, but 88% said they would be interested in purchasing Bitcoin once approved.
• If a Bitcoin spot ETF is approved, attention could shift to Ethereum, said Marcus Thielen of Matrixport.

Bitcoin (BTC) rebounded to $44,500 (approximately 6,452,500 yen, equivalent to 145 yen per dollar) on the 4th. This is because investors ignored the flash crash that occurred on the 3rd and remained optimistic about the impending approval of a Bitcoin spot exchange traded fund (ETF) in the United States.

A report released on the 3rd by crypto asset service provider Matrixport warning that Bitcoin spot ETF applications may be rejected may have triggered Bitcoin’s 10% plunge. However, most market participants still expect the US Securities and Exchange Commission (SEC) to approve the application as early as the 5th.

Eric Balchunas, an analyst at Bloomberg ETF, said in a statement on the afternoon of the 4th that the SEC has issued its final comments on the filing, and potential issuers are expected to update their filings accordingly. Ta.

Shortly after, TechCrunch reporter Jacquelyn Melinek, citing a source “very close to the matter,” said the SEC would soon approve multiple applications.

Expected to increase inflow to Bitcoin

Bitcoin has risen 4% in the past 24 hours and is trading at $44,500 at the time of writing. Almost all of the three days’ losses below the $41,000 level have been erased.

Since BlackRock, the world’s largest asset manager, filed paperwork to list in the United States in June last year (soon followed by a number of other applicants), physical bases that directly hold the underlying assets have been ’s expectations for Bitcoin ETFs have been a boon for the crypto market. Bitcoin spot ETFs are already believed to outperform publicly traded futures-based ETFs, and bulls are betting that spot ETFs will attract significant inflows into Bitcoin.

Interestingly, however, a survey released on Wednesday by Bitwise and VettaFi found that only 39% of financial advisors expect a Bitcoin spot ETF to be approved this year.

More interestingly, the same survey showed that 88% of advisors consider physical ETFs as a primary source and would be interested in purchasing Bitcoin upon approval. Furthermore, Bitwise has also applied for a Bitcoin spot ETF.

Ethereum spot ETF likely to continue

Markus Thielen, head of research at Matrixport and author of Thursday’s report that raised the possibility of a denial or approval delay, said in a podcast interview with CoinDesk on Monday that the SEC He said he expects Bitcoin to allow spot-based ETFs, but noted that Bitcoin could fall further in the coming weeks as technical indicators suggest the uptrend has stalled.

Thielen also said that if a Bitcoin spot ETF is approved, investors will quickly shift their focus to Ethereum (ETH), the second-largest crypto asset by market capitalization. A decision is likely to be made around May, he said.

“If that happens, Ethereum will significantly outperform Bitcoin,” Thielen predicted.

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original text: Bitcoin Rebounds Above $44K as Spot BTC ETF Approval Looks Increasingly Likely