Will Bitcoin ETFs Be Approved? Bloomberg Analysts Raise the Bar!

After the Grayscale victory of August 29, Bloomberg analysts increased the rate of approval of Bitcoin ETFs. The Grayscale lawsuit decision was a positive step for the US’s first spot Bitcoin ETF. Bloomberg analysts also put the odds of approval of ETFs as high as 75%.

Analysts say we’ll likely see a Bitcoin ETF approval

Bloomberg analysts Eric Balchunas and James Seyffart announced that the chances of gaining approval for the spot Bitcoin ETF in the USA increased after the Grayscale victory. This significant development comes after the US Court granted Grayscale’s motion to convert its Bitcoin Trust (GBTC) into a spot BTC ETF.

Previously, Balchunas held spot ETF approval around 65%. This shows that the probability of approval is higher than rejection. According to his new update from account X, analysts are now raising the probability of confirmation to 75%.

Bloomberg analyst Eric Balchunas wrote the following about the increasing rate on his X account today:

James Seyffart and I put our chances of spot Bitcoin ETFs launching this year at 75% (95% by the end of 24). While we included the Grayscale win in our previous 65% rating, the unanimity and determination of the decision was beyond expectations and leaves the SEC with “very little leeway.”

Grayscale leads market for Bitcoin ETF approval

Meanwhile, leading financial institutions such as BlackRock and Fidelity are competing to acquire the first-ever spot Bitcoin ETF from the federal regulator. Following Grayscale’s victory in court, the crypto community shares general optimism that ETF approval will be more likely in the near future.

How BTC whales celebrated Grayscale’s victory

On August 17, an unexpectedly violent sell-off in the Bitcoin market sent BTC below $25,000 for the first time since June 20. This deleveraging event ended with $2.5 billion worth of open positions being removed from the futures markets within a few hours.

As sentiment weakened, BTC’s price remained at $26,000 in the days that followed. On the daily chart, key momentum indicators fell to their lowest levels in two years. This marks a significant drop in Bitcoin accumulation.

However, in the intraday trading session on August 29, BTC price rose above $27,000. Thus, it returned to the price point before August 17th. This increase in price was a result of increased network activity following Grayscale’s victory against the SEC.

Bitcoin investors were the biggest winners

After the news of the court’s decision was heard, the social activity of BTC increased. According to Santiment, the social volume of the coin instantly increased by 7% as the controversy around Bitcoin escalated.

As Kriptokoin.com, we have included the first reaction of the Bitcoin market after the Grayscale victory in this article. The leading crypto is currently maintaining its gains in the $27,200 region.