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Analyst expects renewed market confidence as Bitcoin surges to $71,000 
Bitcoin’s price surged to $71,000 on Tuesday amid increased spot buying and spot BTC exchange-traded fund (ETF) purchases, prompting the cryptocurrency community to debate whether this signals the start of a bull market or its peak. 
At the time of&nbsp;writing, the world’s largest cryptocurrency exchanged hands at $70,950, with a massive 24-hour trading volume of $52.4 billion. The crypto asset’s market cap currently stands at $1.39 trillion. 
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Matteo Greco, research analyst at Fineqia International, has highlighted the increasing investor interest and inflows in Bitcoin spot ETFs as a&nbsp;key&nbsp;driver of Bitcoin’s recent price surge, suggesting a renewed confidence in the market. 
Bitcoin closed last week at approximately $66,300, reflecting a 7.8% climb from the prior week’s close of around $61,500. 
“The week was characterized by low daily volatility, with most of the price increase occurring on Wednesday, while the rest of the week exhibited stable price action,” Greco said in a statement to crypto.news. 
<h2 class="wp-block-heading" id="renewed-interest-in-bitcoin-etfs">Renewed interest in Bitcoin ETFs</h2> 
After five weeks of low demand, resulting in about $1 billion in cumulative net outflows, the recent rebound near $60,000 has reignited interest, with&nbsp;Farside Investors&nbsp;reporting&nbsp;about $950 million in inflows last week, a level not seen since March. 
According to&nbsp;Greco,&nbsp;GBTC was not the only U.S. spot BTC ETF that drew investor funds last week.&nbsp;The development follows a <a href="https://crypto.news/grayscale-ceo-michael-sonneshein-resigns-as-spot-btc-etf-inflows-rebound/" rel="">possible trend reversal</a> for Grayscale’s converted GBTC fund, which experienced its first weekly net inflows in 19 trading weeks&nbsp;last&nbsp;week. The analyst said GBTC received $31.6 million in net inflows between May 13 and May 17.&nbsp; 
However, last week’s GBTC movements paled&nbsp;in comparison&nbsp;to the approximately $17.6 billion in outflows since January, when the U.S. Securities and Exchange (SEC) approved spot Bitcoin (BTC) ETFs.&nbsp; 
With a resurgence in spot Bitcoin ETF inflows and Bitcoin’s price recovery, the Fineqia International analyst believes <a href="https://crypto.news/analysts-consider-possible-short-squeeze-ahead-of-spot-ethereum-etf-deadline/" rel="">attention will&nbsp;now&nbsp;shift to spot Ethereum (ETH) ETFs</a>.&nbsp; 
 You might also like: <a href="https://crypto.news/bitcoin-price-surges-past-70k-as-daily-trading-volume-soars/" rel=""> Bitcoin price surges past $70k as daily trading volume soars </a> 
<h2 class="wp-block-heading" id="potential-outcomes-for-spot-ethereum-etfs">Potential outcomes for spot Ethereum ETFs</h2> 
The SEC&nbsp;is set to make a decision&nbsp;on VanEck and ARK 21Shares’ filings on May 23 and 24, respectively.&nbsp; 
“Market participants expect the SEC to withhold approval for these products, despite approving BTC ETFs in January,” Greco stated, <a href="https://crypto.news/spot-ethereum-etfs-reportedly-facing-potential-sec-denial/" rel="">echoing predictions </a>from Bloomberg experts. 
On May 21, Ethereum <a href="https://crypto.news/ethereum-jumps-17-on-increased-etf-approval-odds/" rel="">surged 18% </a>following an announcement by Eric Balchunas, a senior analyst at Bloomberg, who raised the odds of Ethereum exchange-traded fund approval from 25% to 75%. 
Balchunas noted that the U.S. SEC’s accelerated pace to approve the ETF could be due to political pressure, noting that the agency had previously shown minimal involvement with ETF applicants. 
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 “Concerns over the liquidity of ETH’s spot and futures markets, along with its previous classification as a security by the SEC, contribute to skepticism about swift approval. If rejected, issuers would need to resubmit filings, potentially leading to approval in Q4 2024 or Q1 2025 at best.” <cite>Matteo Greco, research analyst at Fineqia International</cite>
</blockquote> 
In contrast, the Fineqia analyst believes the Securities regulator might approve 19b-4 filings while delaying S-1 approvals. S-1s are registration statements that are mandatory for firms&nbsp;prior to&nbsp;the public offering of securities, whereas 19b-4 forms&nbsp;are used&nbsp;to propose rule changes with the SEC.&nbsp; 
The securities watchdog must approve both firms before spot Ethereum ETFs can&nbsp;be traded&nbsp;on U.S. national exchanges.&nbsp;Greco stated that if the SEC follows this path, it&nbsp;might use the opportunity to&nbsp;thoroughly examine the Ethereum market and possibly <a href="https://crypto.news/sec-has-considered-ethereum-a-security-for-extended-period/" rel="">decide whether or not ETH is a security</a>. 
The analyst concluded, “This decision could be favourable for issuers,” as traditional finance investors seem to remain&nbsp;strongly&nbsp;focused on BTC, potentially reducing market activity around ETH Spot ETFs “if launched next week.” 
 Read more: <a href="https://crypto.news/spot-ethereum-etf-approval-could-send-eth-price-to-5k-analysts-say/" rel=""> Spot Ethereum ETF approval could send ETH price to $5k, analysts say </a>

Bitcoin surges to $71k as analysts cite increased spot ETF inflows

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