Is Bitcoin Preparing to Rally After ASX Approves Spot BTC ETF?
Australian Securities Exchange gave its first approval of a spot Bitcoin ETF listing but BTC remains down at the lows for the week.
Australian Securities Exchange gave its first approval of a spot Bitcoin ETF listing but BTC remains down at the lows for the week. Bitcoin has formed a resistance zone above $70,000, which has been a tough level for buyers since the all time high back in March, and the price keeps retreating every time buyers have a go at it. However, the 100 SMA (green) has been acting as support since January, holding the price during pullbacks lower and now we’re back at this moving average.
Bitcoin Price ActionÂ
- BTC price experienced a notable decline, dropping more than $5,000 from above $70,000 to around $65,000. This decline coincided with the whale activity and significant institutional outflows.
- Technical indicators such as the 20-day Simple Moving Average (SMA), depicted in grey, were breached during this downturn. However, the 100-day SMA continues to act as a crucial support level for BTC, suggesting resilience in the face of selling pressure.
Bitcoin Chart Daily – The 100 SMA Still Holding As Support
Last week a long-dormant BTC whale who was holding 8,000 BTC since 2019, suddenly transferred their assets to Binance, which sparked concerns among investors about a potential market downturn, given the large amount of BTC being moved. That was one of the reasons for the $5,000 decline in BTC last week. Besides that, Grayscale’s Bitcoin Trust (GBTC) recorded significant outflows amounting to $121 million, indicating a substantial reduction in institutional investment in BTC through this vehicle, while Ark Invest’s ARKB also saw outflows of $56 million from Bitcoin-related investments, further impacting market sentiment.
BTC ETF Approval in Australia
However, there’s some good news for cryptocurrencies after the Australian Securities Exchange (ASX), which accounts for 90% of Australia’s equities market, approved the BTC ETF. VanEck, a prominent investment management firm, will launch the first spot Bitcoin ETF on the ASX, which is cheduled to go live on June 20, allowing Australian investors to gain exposure to Bitcoin through a regulated investment vehicle.
VanEck has emphasized that this Bitcoin ETF will be Australia’s lowest-cost option for investing in Bitcoin, aiming to provide competitive pricing to attract investors, as well as it accessible to a wide range of investors who prefer regulated and exchange-traded products. After the SEC’s approval of such products in the United States earlier in 2024. governments across the Asia-Pacific (APAC) region are increasingly supportive of cryptocurrency initiatives, seeking to position themselves as hubs for digital asset innovation and investment.
The approval and upcoming launch of the Bitcoin ETF on the ASX in Australia represents a significant positive development for the cryptocurrency market, which should lend further support for altcoins. It reflects growing regulatory acceptance and could enhance market stability and investor confidence. So, while recent bearish trends driven by whale activity and institutional outflows have impacted BTC prices, the introduction of new investment vehicles like the Bitcoin ETF could provide a counterbalancing effect in the coming weeks, supporting BTC demand and potentially contributing to BTC price recovery, sending it above 70K again.
Bitcoin Live Chart
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