Bitcoin fees surge as ETF hype grows

Rising demand for Bitcoin

The possibility of a Bitcoin exchange-traded fund (ETF) being approved in the United States has sparked increased demand for the cryptocurrency, leading to a significant increase in transaction fees. On November 16, the Bitcoin blockchain recorded $11.6 million in fees, with the average transaction fee reaching $18.69. This represents a 113% increase from the previous day and a staggering 746% increase compared to the same time last year.

Bitcoin price and market analysis

Bitcoin remains near 18-month highs and has surpassed its bear market trading range, with the cryptocurrency currently trading at $36,407, reflecting a 0.58% gain over the past 24 hours. The price surge began after Wall Street investment manager BlackRock filed for a spot Bitcoin ETF with the Securities and Exchange Commission (SEC) in June. Following BlackRock's application, other major asset managers, including Fidelity, ARK Invest, and WisdomTree, submitted similar proposals.

Amended proposals and SEC engagement

While the SEC continues to engage with the firms regarding adjustments to their proposals, a final decision on the ETF approval has been postponed to January 2024. In response to concerns raised by the SEC, WisdomTree, ARK, and several other companies have recently amended their proposals. According to Bloomberg senior ETF analyst Eric Balchunas, this progress is a positive sign.

Spot Bitcoin ETF explained

A spot Bitcoin ETF is an investment fund that mirrors the price of Bitcoin. It allows investors to participate in Bitcoin's market through regular brokerage accounts, without the need to purchase the cryptocurrency on a crypto exchange. The introduction of a spot Bitcoin ETF is expected to attract institutional investors, potentially driving the price of Bitcoin to new highs in the coming months. Bloomberg analysts predict a 90% likelihood of approval for all proposals in the same batch in January.