Retail interest in Bitcoin has reached an all-time high, even as whale interest wanes, according to data from Glassnode. The number of addresses holding 0.1 or more Bitcoin has surged to a record high of 4,469,208 as of Tuesday. Conversely, the number of addresses holding 100 or more Bitcoin has dropped to a three-month low of 15,972. This shift could potentially impact Bitcoin's price dynamics and trading volumes.
Bitcoin's price continued to fluctuate amidst this evolving landscape, trading at $25,937 on Tuesday. While whales' substantial holdings often significantly influence the market, their reduced participation may lead to greater price stability.
On the regulatory front, the U.S. Securities and Exchange Commission (SEC) has recently delayed decisions on spot Bitcoin ETF proposals from companies such as BlackRock (NYSE:BLK), Fidelity, and Invesco until at least mid-October. This move follows a federal court ruling in the Grayscale vs. SEC case that criticized the SEC's rejection of spot Bitcoin ETFs as “arbitrary and capricious.”
Analysts from JPMorgan (NYSE:JPM), led by Nikolaos Panigirtzoglou, predicted that the SEC is poised to approve several spot Bitcoin ETFs following Grayscale's landmark legal win against the SEC. The court mandated the SEC to reconsider its previous rejection of Grayscale's application to transform its Bitcoin Trust into an ETF.
Jay Clayton, former chairman of the SEC, underscored that Bitcoin was not a security and highlighted the growing demand from retail and institutional investors. He asserted that the ongoing division between futures-based and cash-based Bitcoin ETFs could not persist indefinitely.
Despite these developments and considerable volatility over the past month, traders remain uncertain about Bitcoin's future price direction. However, Clayton remained optimistic about a spot Bitcoin ETF ultimately securing approval in the United States.
The SEC has also deferred decisions on filings from Bitwise, VanEck, Invesco, Valkyrie and WisdomTree, according to documents posted on its website last week. BlackRock was also deferred according to a spokesperson for the firm.
These developments come after a federal appeals court overturned the agency's rejection of Grayscale's application to convert its Bitcoin trust into an ETF. This decision could potentially reshape the cryptocurrency landscape in the U.S., injecting more competition into the market and potentially lowering fees for investors.
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