Bitcoin (BTC) climbed to highs of $29,300 in the past 24 hours, extending its weekly gains to over 9% as bullish sentiment around a possible spot bitcoin exchange-traded fund (ETF) approval in the U.S. gained momentum.
Tokens formed by the forking of Bitcoin, Bitcoin Cash (BCH) and Bitcoin SV (BSV) jumped as much as 26% to lead gains among alternative tokens in a sign of possible irrational exuberance.
Several ETF providers amended their filings over multiple days in the past week alongside pressure on the U.S. Securities and Exchange Commission (SEC) to soften its stance on a bitcoin ETF approval.
Earlier this week, four House Financial Services Committee members urged the SEC to listen to the courts and give up efforts to block bitcoin ETFs from regulatory approval in a letter to SEC Chair Gary Gensler.
Elsewhere, hopes of the Grayscale Bitcoin Trust (GBTC) being converted into an ETF riled up some traders. GBTC is one of the largest institutional bitcoin holdings, and Grayscale is among several other asset managers who have applied for a bitcoin spot ETF. Other major firms in the race include BlackRock (BLK), Fidelity and WisdomTree (WT).
Meanwhile, traders said a ruling in Grayscale’s favor could tilt overall sentiment bullish and even set the bedrock for a broader market climb.
“Bitcoin has also been encouraged by possible ETF approval and an increasing number of ETF submissions by leading companies,” shared Lucy Hu, senior trader at Metalpha, in a message early Friday. “The SEC opted for a no-appeal on Grayscale’s ruling, and as the deadline for BTC spot ETF applications from institutions such as Blackrock looms closer, the market’s confidence in ETF approval has increased.”