According to Bloomberg, Bitcoin's value increased by up to 2.1% and traded around $43,000, recovering from Tuesday's decline. Other major cryptocurrencies also experienced gains. Grayscale Investments announced on Tuesday that its CEO, Michael Sonnenshein, is stepping down. This news comes before the January 10 deadline for the US Securities and Exchange Commission (SEC) to decide on approving the first spot Bitcoin ETF. Grayscale is seeking approval to convert its Bitcoin trust, the largest in the world, into an ETF.
Hayden Hughes, co-founder of social-trading platform Alpha Impact, stated that Sonnenshein's departure is seen as a positive sentiment for Bitcoin demand. There are also expectations that the SEC may allow other Grayscale products to be listed as ETFs after Sonnenshein's resignation, driving institutional demand in Grayscale Bitcoin Cash Trust. One key issue is whether an actual approval for the products will spur profit-taking, based on the adage that investors 'buy the rumor and sell the news.'
The market is 'almost certain' that the SEC will grant permission for spot Bitcoin ETFs before January 10. Bitcoin's advance this year has also been fueled by expectations of declining interest rates in the US. The rally has partially repaired the damage from a significant 2022 crash that impacted the crypto industry. However, the token remains below its 2021 pandemic-era record of nearly $69,000.
