Nov 18, 2023

Bitcoin Fees Skyrocket on Spot BTC ETF Hype – Newest Crypto

Bitcoin fees skyrocket on spot BTC ETF hype

Cryptocurrency Demand Increases as Spot Bitcoin ETF Approval Looms

The possibility of a Bitcoin (BTC) exchange-traded fund (ETF) being approved in the United States has increased demand for the major cryptocurrency, causing transaction fees to surge. According to CryptoFees, the Bitcoin blockchain reached $11.6 million in fees paid on Nov. 16. Data from YCharts shows that the average transaction fee is currently $18.69, representing a 113% increase from the previous day and a 746% increase from a year ago.

The price of Bitcoin has been steadily rising since Wall Street investment manager BlackRock filed for a spot BTC ETF with the Securities and Exchange Commission (SEC) in June. Since then, several other major asset managers in the United States, including Fidelity, ARK Invest, and WisdomTree, have submitted similar proposals.

At the time of writing, Bitcoin is trading at $36,407, a 0.58% gain over the past 24 hours. This puts the cryptocurrency near 18-month highs and beyond its bear market trading range.

The increasing demand for crypto assets, such as Renq, Muse, Monavale, Kadena, QNT, Polymath, and Robinhood, is indicative of the growing Web 3.0 movement.

Spot Bitcoin ETF: SEC Decision Coming in January

The SEC has yet to make a decision on spot Bitcoin ETFs, pushing the final deadline to January 2024. On Nov. 16, WisdomTree, ARK, 21Shares, Valkyrie, Bitwise and VanEck all amended their Form S-1 with the regulator in response to concerns raised by the SEC. According to Bloomberg senior ETF analyst Eric Balchunas, the amended versions may be a sign of solid progress, as the ball is now back in the SEC’s court.

A spot Bitcoin ETF is an investment fund that reflects the price of Bitcoin, allowing investors to gain exposure to BTC price fluctuations without having to purchase it on a crypto exchange such as RenQ, On, Muse, Monavale, Kadena, or the newest QNT, Polymath, or Robinhood. If approved, the influx of institutional capital is likely to drive Bitcoin prices to new heights in the coming months, with Bloomberg analysts predicting a 90% likelihood of approval for all proposals in the same batch in January.

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