Bitcoin crosses $29K after Invesco jumps on BTC spot ETF bandwagon

Key Takeaways:

• Bitcoin price could approach $30,000 in Q3.
• BTC dominance grows with regulatory uncertainty.
• Invesco’s renewed interest in a Bitcoin spot ETF could have fueled the rally.

YEREVAN (CoinChapter.com) – Bitcoin (BTC) changed hands at $29,000 in the European session on June 21 after a near-20% weekly uptrend, the largest upside move since March. If the factors behind the rally persist, BTC could break the $30,000 ceiling in the coming quarter.

The crypto community has watched Bitcoin’s choppy performance closely since the US Securities and Exchange Commission (SEC) decided to sue Binance and Coinbase, casually erasing $95 billion from the altcoin market June 1-15.

Meanwhile, Bitcoin reaped benefits from its status clarity and reclaimed 51% market dominance for the first time in two years. Moreover, as seen in the chart below, Bitcoin dominance is nearly crossing its 200-week exponential moving average barrier (EMA-200; blue wave).

Also read: Bitcoin Price Reaches $138K! But Only On Binance US.

Bitcoin Spot ETF applications are all the rage

Following BlackRock’s example, global asset management firm Invesco reactivated its filing for a Bitcoin spot exchange-traded fund (ETF). The latter is the largest asset manager globally with $9.1 trillion under its wing, and filed for a Bitcoin spot ETF, and, rumor has it, Fidelity will file again.

In the filing, the firm contended that if investors have access to other vehicles for their Bitcoin investments, instead of directing their funds into “loosely regulated offshore vehicles,” they could protect their principal investments in BTC and benefit from the same.

BlackRock has famously gotten 575 ETFs approved against a single rejection. According to a Bloomberg report, Jan Van Eck, CEO of the global investment management firm VanEck Eck said on May 18 there is “no chance” that a Bitcoin Spot ETF will be launched in the US soon. 

However, if approved, it will surely attract many investors, boosting the price even further.

Also read: Lurking Stagflation risks trumping stocks’ “delusional” 16% rally.

In detail, ETFs attract a broad range of investors seeking exposure to diversified portfolios of assets without enduring the risks. Thus, many fiat financial services companies offer Bitcoin ETFs to their customers. However, those deal with futures trading instead of spot trading.

Spot trading carries greater risks, and as of June 2023, no Bitcoin Spot ETFs have been approved in the United States.

The world’s largest digital asset management company Grayscale applied for one in March 2022, getting a rejection. The US Securities and Exchange Commission (SEC) also rejected financial giant Fidelity’s plea for a Bitcoin Spot ETF in January 2022. 

Meanwhile, Invesco manages just under $1.5 trillion, making the firm a potentially large contributor to Bitcoin’s rally.