Wednesday, we discussed that crypto was likely to be a hotter topic than meme stocks at Thanksgiving dinner, given its recent performance. ₿
After the holiday, that trend of outperformance continues, with Bitcoin touching 1.5-year highs and many traders anticipating it will break above $40,000 this weekend.
As for what’s driving the recent strength, the theory remains that a spot Bitcoin ETF is inching closer towards approval. And once that happens, it would open the floodgates to more spot crypto ETFs and drive further industry adoption. More evidence seems to be piling up each week that the market is betting on it happening soon. 📝
For example, Eric Balchunas pointed out that the Grayscale Bitcoin Trust $GBTC is trading at its smallest discount in over two years as traders bet that its conversion could soon occur. Others pointed to Coinbase shares at 1.5-year highs. 🔺
Additionally, a U.S. Securities and Exchange Commission (SEC) Commissioner, Hester Peirce, recently emphasized that there’s “no reason for [the SEC] to stand in the way of a spot Bitcoin ETF.” However, when pressed by the Bloomberg reporter, she could not comment further on the ongoing conversations between ETF issuers and SEC staff. 🤐
We’ll have to wait and see what the coming weeks hold, but the crypto bull run continues for now. And it’s not catching as many people’s attention as we thought it would. 🤷