Bitcoin (BTC) surged past the $31,000 mark over the weekend, marking its best performance in over a year. This positive momentum in the market coincides with the increasing interest from traditional financial institutions (TradFi) in applying for spot Bitcoin ETF licenses. Among them are industry giants like BlackRock, Valkyrie, and BitWise…
Spot Bitcoin ETF allows investors to invest in Bitcoin without having to directly purchase it. This means they don’t have to worry about the complexities of using cryptocurrency wallets or becoming victims of constant exchange failures. In simpler terms, ETFs bridge the gap between traditional finance and Bitcoin.
While Bitcoin futures ETFs have already entered the market, spot Bitcoin ETFs are considered to be more significant. Unlike futures ETFs, spot Bitcoin ETFs will be backed by actual BTC and the price of a share on the exchange will track the spot price of BTC, just like holding BTC itself.
Market sentiment appears to be overwhelmingly optimistic as traders set their sights on higher price targets, surpassing those of the bearish camp. According to Coinglass, long positions in BTC have increased to 51% of total active positions in the market.