The cryptocurrency market is riding a powerful wave of momentum, driven by growing optimism around the potential approval of a spot Bitcoin exchange-traded fund (ETF). On November 9, Bitcoin surged to nearly $38,000, marking a 7% increase over the previous 24 hours and reaching its highest level in more than 18 months. According to data from CoinGecko, the leading digital asset reached a peak of $37,935, underscoring a significant shift in market sentiment.
This rally isn’t isolated to Bitcoin alone. Ether, the native token of the Ethereum blockchain and the second-largest cryptocurrency by market capitalization, climbed 8% to surpass $2,000 for the first time since July. The broader crypto market followed suit, with assets like Cardano (+8.2%), Solana (+9.9%), and Chainlink (+12.7%) posting strong gains. As a result, the total market capitalization of all cryptocurrencies jumped approximately 5.4%, reaching $1.45 trillion—far outpacing the flat performance of traditional indices like the NASDAQ and S&P 500.
What’s Driving the Crypto Rally?
The primary catalyst behind this surge is increasing confidence in the imminent approval of a spot Bitcoin ETF in the United States. Unlike futures-based ETFs, a spot Bitcoin ETF would allow investors to gain exposure to actual Bitcoin holdings, making it more attractive to institutional and retail participants alike.
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Brian Rudick, senior strategist at crypto trading firm GSR, attributes the rally to “optimism around a near-term spot Bitcoin ETF approval and a resulting short-squeeze.” A short-squeeze occurs when rising prices force traders who bet against an asset to buy it back at higher prices, further fueling upward momentum.
Adding fuel to the fire, BlackRock—the world’s largest asset manager—registered an entity named “iShares Ethereum Trust” in Delaware on November 9. While not a formal application, this move signals that BlackRock may soon file for a spot Ether ETF, mirroring its earlier Bitcoin ETF submission in June. This strategic step has reignited investor enthusiasm across both Bitcoin and Ethereum ecosystems.
David Lawant, head of research at FalconX, echoed this sentiment: “Bitcoin continues to perform well as the market focuses on the U.S. spot ETF approval process.” He noted that Ethereum emerged as “the big star of the day” following BlackRock’s registration, highlighting how regulatory expectations are now shaping price action across major digital assets.
A Month-Long Bull Run Fueled by Institutional Hopes
The current upswing marks the continuation of a month-long rally that began on October 9. Since then, the total crypto market cap has soared by roughly 30%. This sustained growth aligns closely with rising expectations that U.S. regulators may finally greenlight a spot Bitcoin ETF.
Traditional financial institutions manage trillions of dollars in assets but have historically been hesitant to enter the crypto space due to regulatory uncertainty and limited investment vehicles. Platforms like Vanguard or TD Ameritrade offer little to no direct crypto exposure, forcing institutional investors to rely on indirect or derivative instruments.
An approved spot Bitcoin ETF would change that dynamic dramatically. By enabling seamless integration into conventional brokerage accounts, it would open the floodgates for massive capital inflows into digital assets.
James Butterfill, head of research at CoinShares, commented on the growing excitement: “There is significant hype surrounding the recent comments from Bloomberg regarding the ETF ‘window.’” While rapid price increases can be concerning, he emphasized that “we remain well below the all-time highs seen in 2021,” suggesting room for further growth even in a bullish scenario.
Regulatory Outlook: Is Approval Imminent?
Analysts at Bloomberg Intelligence believe a narrow approval window for a spot Bitcoin ETF opened on November 9. Even if the Securities and Exchange Commission (SEC) does not act in November, they estimate a 90% probability of approval by January 2025.
This forecast builds on BlackRock’s strong track record with ETF approvals and its influential position within global finance. Once the SEC gives the green light to BlackRock’s application, other financial institutions that have filed similar proposals—such as Fidelity, VanEck, and ARK Invest—are expected to quickly follow.
Historically, the SEC has resisted spot Bitcoin ETFs over concerns about market manipulation and investor protection. However, increased oversight mechanisms, matured exchange infrastructure, and high-profile applications have shifted the regulatory landscape.
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Frequently Asked Questions (FAQ)
Q: What is a spot Bitcoin ETF?
A: A spot Bitcoin ETF is an exchange-traded fund that directly holds Bitcoin and tracks its real-time price. It allows traditional investors to gain exposure to Bitcoin without needing to buy or store it themselves.
Q: Why is BlackRock’s involvement so important?
A: BlackRock’s size, reputation, and successful history with ETF approvals give its application significant weight. Its entry signals institutional legitimacy and increases pressure on regulators to act.
Q: How could an ETF approval impact Bitcoin’s price?
A: Approval could lead to massive inflows from pension funds, mutual funds, and retail investors through mainstream brokers—potentially driving substantial price appreciation.
Q: Is this rally sustainable without ETF approval?
A: While short-term momentum may persist, long-term sustainability likely depends on regulatory clarity and continued institutional adoption.
Q: Could Ethereum also get an ETF?
A: Yes—BlackRock’s registration of “iShares Ethereum Trust” suggests preparations for a spot Ether ETF are underway, though regulatory hurdles may differ from Bitcoin’s case.
Q: Are we entering a new bull market?
A: Many analysts believe so. With prices still below 2021 peaks and macroeconomic conditions improving, growing institutional interest supports a new phase of growth.
Looking Ahead: Beyond ETF Hype
While ETF speculation dominates headlines, underlying fundamentals also support long-term confidence in digital assets. Network upgrades, expanding use cases in decentralized finance (DeFi) and Web3, and increasing corporate treasury adoption contribute to a maturing ecosystem.
Moreover, global macro trends—such as monetary easing expectations and inflation hedging—make Bitcoin’s fixed supply of 21 million coins increasingly appealing.
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Despite volatility, the convergence of regulatory progress, institutional interest, and technological advancement paints a compelling picture for digital asset investors.
In summary, while near-term price movements are being propelled by ETF anticipation, the foundation for lasting growth appears stronger than ever. As markets evolve and barriers fall, cryptocurrencies may soon become a standard component of diversified investment portfolios worldwide.