Second-Quarter Surge: Bitcoin’s Market Share On the Rise

In the 2nd quarter of 2023, Bitcoin saw its market share surge by 5.4%. This increase, while significant on its own, comes with insights from top financial institutions that point to an even brighter future for the cryptocurrency.

Galaxy Digital’s CEO, Mike Novogratz, has mentioned in the company’s recent earnings call that he’s been receiving cues from insiders at BlackRock and Invesco. Their collective sentiment is that regulatory approval for a spot Bitcoin exchange-traded fund (ETF) seems imminent. These insiders strongly believe that it’s a “question of when not if.”

According to "contacts" from inside BlackRock and Invesco spot Bitcoin ETF approval a matter of "when, not if" likely in "four to six months" — Galaxy CEO Mike Novogratz on earnings call this morning pic.twitter.com/TIhHC7xnHI

— Eric Balchunas (@EricBalchunas) August 8, 2023

The anticipation has been further strengthened by the Bitcoin ETF applications from financial giants like BlackRock. These gestures have indeed begun swaying the sentiment in favor of Bitcoin among institutional investors, shedding a positive light on its future prospects.

The Bitcoin Price: A Prolonged Lull, but a Bright Horizon

While the buzz around institutional interests and ETFs rages on, data from the renowned on-chain analytics firm, Glassnode, gives a more grounded perspective. Glassnode’s latest report indicates that Bitcoin’s current price volatility, or rather the lack of it, might linger for another six months.

This sentiment echoes the previous patterns witnessed in Bitcoin’s volatility cycles. However, this should not be misconstrued as a lack of interest or momentum in the flagship cryptocurrency. The overarching institutional interest, especially the push for ETFs, provides an underlying momentum that could defy these patterns in the long run.

Grayscale vs. The SEC: The Fight for ETF Recognition

Michael Sonnenshein, the CEO of Grayscale, has been at the forefront of the tussle with the Securities and Exchange Commission (SEC) to convert the Grayscale Bitcoin Trust into an ETF. Despite the SEC’s pushback last year, the determination persists.

We believe a spot #BitcoinETF in the US is a matter of "when" not "if." Until then, $GBTC is available via your brokerage account.
Watch the full conversation: https://t.co/teyybttQXz
Learn more about $GBTC: https://t.co/hJQAsvWIat pic.twitter.com/P0p3EDvrpV

— Grayscale (@Grayscale) August 3, 2023

The market hangs in anticipation as Sonnenshein projects that a verdict might be delivered by this fall. Experts and analysts are leaning towards a favorable outcome for Grayscale. Elliot Stein, as quoted in a Bloomberg article and later tweeted by Greg Salm of Grayscale BTC, opined, “If the SEC loses its case against Grayscale, as anticipated, the path of least resistance would lead to a cascade of approvals for all spot Bitcoin ETF applicants.”