Bitcoin (BTC) traded at approximately $87,660 on Wednesday, marking a daily increase of 0.81%. The rise is supported by renewed market optimism driven by significant institutional developments.
A key catalyst behind this movement is the Cboe BZX Exchange’s formal application to the U.S. Securities and Exchange Commission (SEC) to list Fidelity’s spot Solana (SOL) Exchange-Traded Fund (ETF). This move follows a similar application submitted by Cboe on behalf of Franklin Templeton for a SOL-focused fund.
The trend is gaining momentum, with other major asset managers—including Bitwise, VanEck, and Grayscale—also entering the race to launch spot Solana ETFs.
According to Bloomberg Intelligence, the probability of a spot SOL ETF gaining approval in 2024 is as high as 70%. This prediction is based on the successful approvals of Ethereum and Bitcoin ETFs, along with the introduction of SOL futures contracts by the Chicago Mercantile Exchange (CME).
If Fidelity’s SOL ETF is approved, it could further legitimize cryptocurrency ETFs as a whole and potentially channel more institutional capital into the altcoin market. Broader ETF coverage across digital assets may also contribute to Bitcoin’s long-term growth.
Key Takeaways:
- SOL ETF applications build on the momentum from recent ETH and BTC ETF approvals.
- Analysts estimate a 70% chance of a spot SOL ETF being approved in 2024.
- Regulatory acceptance of altcoin ETFs may bring long-term benefits to Bitcoin.
GameStop Embraces Corporate Bitcoin Strategy
GameStop revealed in its 2024 fiscal year report that it has updated its financial policy to allow the potential allocation of corporate funds into Bitcoin (BTC) and USD-denominated stablecoins.
Although the company has not yet announced any specific cryptocurrency purchases, this decision places GameStop alongside firms like MicroStrategy and Tesla, which have already incorporated Bitcoin into their balance sheets.
GameStop ended the year with $4.78 billion in cash and liquid securities—a substantial increase from the previous year’s $939 million, largely due to a $3.45 billion stock offering. This strong liquidity position provides the company with flexibility to explore digital asset investments.
This move signals growing corporate acceptance of Bitcoin as a legitimate reserve asset and reinforces BTC’s perceived role as a hedge in volatile macroeconomic environments.
Ripple and SEC Reach Settlement, Boosting Market Confidence
In another positive development, Ripple Labs has withdrawn its cross-appeal against the SEC, following a similar move by the regulatory agency.
As part of the settlement, Ripple will recover $75 million from the previously imposed $125 million penalty, effectively ending a multi-year legal battle that had cast uncertainty over XRP and the broader cryptocurrency market.
This resolution, along with recent indications of the SEC softening its stance on other crypto-related enforcement actions, suggests a shift in regulatory approach. These developments may further strengthen institutional confidence in digital assets.
With SEC Commissioner Mark Uyeda emphasizing a shift from enforcement to regulatory clarity, Bitcoin may benefit from reduced legal and regulatory headwinds in the future.
Bitcoin Technical Analysis: Building Momentum Toward Key Resistance
From a technical perspective, Bitcoin maintains a bullish structure, currently consolidating near $87,660 while holding above the 50-day Exponential Moving Average (EMA) support level of $86,470. The price is following an ascending trendline, with key support situated around $86,460, indicating sustained buying interest.
The major resistance level to watch is $88,780. A breakout above this point could open the path toward $90,750 and even $92,800.
The Relative Strength Index (RSI) currently reads 56, suggesting neutral momentum. However, as long as Bitcoin remains above $86,460, the overall technical outlook remains bullish.
Frequently Asked Questions
What is a spot Solana ETF?
A spot Solana ETF is an exchange-traded fund that holds actual Solana (SOL) tokens. It allows investors to gain exposure to SOL’s price movements without having to purchase or store the cryptocurrency themselves. These ETFs are subject to regulatory approval, and their introduction could attract more institutional investors to the crypto space.
Why are companies like GameStop adding Bitcoin to their treasuries?
Companies are increasingly considering Bitcoin as a treasury reserve asset due to its potential as a store of value and hedge against inflation. By allocating a portion of their cash reserves to BTC, firms aim to protect their capital from currency devaluation and benefit from long-term appreciation.
How does the Ripple-SEC settlement affect the crypto market?
The settlement between Ripple and the SEC reduces regulatory uncertainty and is viewed as a positive step toward clearer regulations. It improves market sentiment and may encourage more institutional participation by lowering perceived legal risks associated with digital assets.
What are the key technical levels for Bitcoin?
Bitcoin is currently testing resistance near $88,780. Major support lies around $86,460, aligned with the 50-day EMA. A break above resistance could lead to further gains, while falling below support may signal a short-term pullback.
How can investors gain exposure to Bitcoin through ETFs?
Investors can buy shares in Bitcoin ETFs, which track the price of BTC and trade on traditional stock exchanges. These products provide a regulated and accessible way to invest in Bitcoin without dealing with private keys or crypto exchanges. 👉 Explore more investment strategies
What is the significance of CME offering Solana futures?
The introduction of Solana futures on the CME provides a regulated marketplace for institutional traders to hedge or speculate on SOL’s price. This development is often seen as a precursor to the approval of spot SOL ETFs, as it helps establish a regulated pricing framework.