Bitcoin
BTC
 saw an impressive surge of 11.5%, topping $35,000, with the digital currency trading at $34,240 as of Tuesday morning in London. This marks a 109% year-to-date rebound after the 2022 market slump. Fueling this optimism is the anticipation of the U.S.’s first spot bitcoin ETF, with asset management giants BlackRock
BLK
 and Fidelity Investments at the forefront.

A U.S. federal appeals court recently formalized a victory for Grayscale Investments in its quest to launch a spot bitcoin ETF, despite objections from the U.S. Securities and Exchange Commission. The SEC has been historically cautious about permitting ETFs that invest directly in bitcoin, citing concerns like market manipulation and fraud. However, analysts believe the court ruling, coupled with strong applications from industry leaders, might finally make the SEC budge.

Eric Balchunas, Bloomberg Intelligence ETF analyst, took to X—the platform once known as Twitter—to announce that BlackRock’s iShares Bitcoin Trust has been listed on the Depository Trust and Clearing Corp. with the ticker IBTC. “This is pretty much checking every box that you need to check before you launch an ETF,” Balchunas said.

X (formerly Twitter)JavaScript is not available.

Last week, bitcoin also witnessed a 10% intraday surge due to erroneous reports that BlackRock had already gained approval for its fund.

Despite these advancements, the SEC maintains a vigilant stance on bitcoin. The SEC has already approved financial instruments such as a bitcoin futures ETF. However, critics argue that these offerings don’t offer the same direct exposure to bitcoin as a spot ETF would.

The SEC’s heightened oversight, particularly following events like the FTX exchange’s bankruptcy, coupled with its reluctance to approve a bitcoin spot ETF despite congressional appeals, invites speculation about its underlying motivations to delay approval.

Analysts like Elliott Stein and James Seyffart from Bloomberg Intelligence have said that approving a spot bitcoin ETF seems “inevitable,” though the timing remains a mystery. If BlackRock gains the nod from the SEC, it could set a precedent for other applications currently under review, including those from ARK Investment, Fidelity, and Valkyrie.

Cathy Wood believes that the SEC is likely to approve all spot bitcoin ETFs simultaneously when it finally gives the go-ahead. This action could provide much-needed clarity to the existing maze of rules and regulations.

BlackRock’s iShares spot bitcoin ETF, listed on the DTCC and poised for a Nasdaq debut, is viewed by many as a sign that SEC approval is close at hand. Should this happen, it’s not just a win for BlackRock but could potentially open the floodgates for a new era of bitcoin investment options.

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