The anticipation of the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States has triggered increased demand for Bitcoin, resulting in a significant surge in transaction fees on the Bitcoin blockchain.
Statistics from CryptoFees reveal that on November 16, the Bitcoin blockchain recorded $11.6 million in fees. As of the latest available data from YCharts, the average transaction fee stands at $18.69, marking a 113% increase from the previous day and a substantial 746% surge compared to the same day last year.
Despite fluctuations in transaction fees, Bitcoin continues to hover near 18-month highs and has surpassed its bear market trading range. At the time of writing, the cryptocurrency is valued at $36,407, reflecting a 0.58% gain over the past 24 hours.
Bitcoin’s recent price rally has been attributed to increased speculation surrounding the potential approval of a spot Bitcoin ETF in the U.S. Since investment manager BlackRock filed for a spot BTC ETF with the Securities and Exchange Commission (SEC) in June, other major asset managers such as Fidelity, ARK Invest, WisdomTree, and more have submitted similar proposals. While the SEC has engaged with these firms and allowed for adjustments, it has yet to make a final decision, extending the deadline to January 2024.
Several amendments to ETF proposals have been made in response to SEC comments, with WisdomTree, ARK, 21Shares, Valkyrie, Bitwise, and VanEck making adjustments to their respective proposals. Bloomberg senior ETF analyst Eric Balchunas views these amendments as a positive sign, indicating solid progress.
A spot Bitcoin ETF mirrors the price of Bitcoin and involves the purchase of actual Bitcoin as the underlying asset. This investment instrument is expected to attract institutional investors, potentially driving Bitcoin prices to new highs. Bloomberg analysts estimate a 90% likelihood of approval for all proposals in the same batch by January.