As Expectations Rise for Spot Bitcoin ETFs, Retail Investor Interest Surges

• Former Chairman of the U.S. Securities and Exchange Commission (SEC), Jay Clayton, expressed optimism that a spot Bitcoin exchange-traded fund (ETF) would eventually receive approval in the United States.
• The SEC has extended the decisions on spot Bitcoin ETF proposals from companies like BlackRock, Fidelity, and Invesco until mid-October.
• The number of addresses holding 0.1 or more Bitcoin reached an all-time high of 4,469,208, while whale interest in Bitcoin experienced a significant decline.

The SEC has decided to extend the review process for spot Bitcoin ETFs, but hope is not lost; Individual investors’ interest in BTC is increasing.

Hopes Remain for Spot Bitcoin ETFs

Throughout last month, Bitcoin witnessed significant volatility that left many traders uncertain about its future price direction. Nevertheless, former SEC Chairman Jay Clayton expressed optimism about the eventual approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.

Clayton emphasized that Bitcoin is not a security and noted an increasing demand for access from both retail and institutional investors. He argued that the ongoing distinction between futures-based and cash-based Bitcoin ETFs couldn’t persist indefinitely.

While futures-based Bitcoin ETFs already exist in the United States, the SEC has yet to approve a spot Bitcoin ETF. The recent federal court ruling in the Grayscale vs. SEC case criticized the SEC’s rejection of spot Bitcoin ETFs as “arbitrary and capricious” due to insufficient justifications for treating similar products differently.

Clayton acknowledged the possibility of a new rejection based on different justifications but remained uncertain about what those justifications might be. The SEC has extended the decisions on spot Bitcoin ETF proposals from companies like BlackRock, Fidelity, and Invesco until mid-October.

Retail Investor Interest in Bitcoin Reaches New Highs

Retail investors continue to display strong interest in Bitcoin, as evidenced by a trend reflected in Glassnode’s data. The number of addresses holding 0.1 or more Bitcoin reached an all-time high of 4,469,208.

In contrast, whale interest in Bitcoin experienced a significant decline. The number of addresses holding 100 or more Bitcoin reached its lowest level in three months, standing at 15,972, according to Glassnode.

Whales, with their significant holdings, can often have a substantial impact on the market. A decrease in their participation can lead to greater price stability but may also result in lower trading volumes.

At the time of writing, Bitcoin is trading at $25,700. Its price continues to fluctuate in response to changing regulatory frameworks and market sentiment.