Bitcoin fever soars: Spot ETFs on the horizon?

While today the Bitcoin price is 100% higher exactly one year later than it was on 9-11-2022, a "short squeeze" is causing the price to soar to nearly $37K. Hopes for the adoption of spot ETFs reinforce this trend.

In the past 24 hours, shorts worth more than $62 million have been liquidated, contributing to rising prices. Shorts are positions that bet against price increases. This "squeeze," a chain reaction by closing short positions, is causing prices to rise rapidly.

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SEC talks and the future of ETFs

‍Theprice hike coincided with reports that the SEC would begin talks with fund manager Grayscale. Their Grayscale Bitcoin Trust GBTC, a regulated product with billions of BTC, could potentially be converted to a spot ETF. This could ease the path for everyday investors into crypto investments.

Bloomberg analysts see a spot Bitcoin ETF approval in the U.S. with a 90% chance in January. The SEC has an 8-day window, from Nov. 9 to Nov. 17, to review all 12 applications for spot Bitcoin ETFs. This move could shake up the market considerably.

While the approval of a spot Bitcoin ETF is far from certain, analysts predict a high probability of approval by January next year.

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Optimism and caution in the market

‍Theapproval would not only be a sign of increasing confidence in crypto, but could also open the door for a new bull market. Still, some analysts are skeptical about the sustainability of this rally.

With Bitcoin's rally dragging down other assets, the crypto market remains in anticipation of what is to come. It is clear that interest in crypto continues to grow, and with recent price increases, the stars seem to be aligned favorably for an exciting end to the year.