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Bitcoin transaction fees surge due to hype for spot Bitcoin ETF

Bitcoin On November 16, the Bitcoin blockchain recorded a remarkable milestone, accumulating $11.6 million in transaction fees. This surge is attributed to the escalating demand for Bitcoin, catalyzed by the anticipation of a United States-approved spot Bitcoin exchange-traded fund (ETF). As per CryptoFees statistics, the current average transaction fee stands at $18.69, reflecting a notable
On November 16, the Bitcoin blockchain recorded a remarkable milestone, accumulating $11.6 million in transaction fees. This surge is attributed to the escalating demand for Bitcoin, catalyzed by the anticipation of a United States-approved spot Bitcoin exchange-traded fund (ETF). As per CryptoFees statistics, the current average transaction fee stands at $18.69, reflecting a notable 113% increase within a day and an impressive 746% surge compared to the previous year.

Bitcoin transaction fees last 10 months. Source: Crypto Fees

Bitcoin, resiliently hovering near 18-month highs and surpassing its bear market trading boundaries, is presently valued at $36,407, marking a 0.58% gain in the last 24 hours. The upward trajectory in Bitcoin’s price traces back to June when BlackRock, a prominent Wall Street investment manager, filed for a spot BTC ETF with the Securities and Exchange Commission (SEC). Following BlackRock’s initiative, other major asset management players such as Fidelity, ARK Invest, and WisdomTree, among others, submitted similar proposals.

The SEC engages with these firms on potential adjustments, the final decision has been postponed to January 2024. Notably, WisdomTree, ARK, 21Shares, Valkyrie, Bitwise, and VanEck have recently amended their proposals in response to comments raised by the SEC. Bloomberg senior ETF analyst Eric Balchunas views these amendments as a positive indicator, suggesting significant progress in addressing regulatory concerns.

A spot Bitcoin ETF essentially mirrors the price of Bitcoin, with the “spot” designation indicating the fund’s direct acquisition of Bitcoin as the underlying asset. This investment vehicle enables investors to engage in the Bitcoin market through traditional brokerage accounts, eliminating the need to purchase Bitcoin on a crypto exchange.

The potential approval of a spot Bitcoin ETF is anticipated to attract substantial capital from institutional investors, potentially propelling Bitcoin to new highs in the upcoming months. Bloomberg analysts express confidence, assigning a 90% likelihood of approval for all proposals in the same batch come January.

Wasif Shakir

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