Bitcoin, Ethereum, Dogecoin Rise After Fidelity ETF News: Analyst Says King Crypto Poised To Touch $40K If SEC Approves Application

Major cryptocurrencies traded in the green on Monday following reports that Fidelity is making preparations for a Bitcoin exchange-traded fund (ETF) application.

What Happened: Fidelity is nearing the submission of an application for a Bitcoin ETF in the United States, reported The Block.

This comes as several other asset managers, including BlackRock, WisdomTree, Invesco, and Bitwise, have already filed similar applications this month

It’s important to note that approval from the Securities and Exchange Commission (SEC) is required for all these applications. 

Notably, Fidelity’s previous attempt to introduce a spot Bitcoin ETF in the U.S. was rejected in 2021. Nevertheless, Fidelity successfully launched the Fidelity Advantage Bitcoin ETF in Toronto, Canada, in December 2021.

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At the time of writing, the global crypto market capitalization stood at $1.18 trillion, an increase of 0.28% over the last day. 

During Tuesday’s trading session, the S&P 500 and Nasdaq Composite, saw substantial gains, with both indices surging over 1%. 

This upward momentum was largely driven by a resurgence in the technology sector following last week’s sell-off.

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Analyst Notes: "Bitcoin momentum remains intact as Fidelity joins the quest for the elusive bitcoin etf with BlackRock, Invesco, WisdomTree, and Invesco. It has been about five years of steady denials of every crypto ETF filing, but now optimism is here that one of these financial giants will get one done before summer's end," wrote Edward Moya, Senior Analyst at OANDA told Benzinga.

He added, "Initial resistance comes from the $34,000 level and if we do see a bitcoin ETF approval institutional momentum could take the rally as high as the $40,000 level. Any major setbacks with a BlackRock ETF rejection and a Grayscale defeat could temporarily kill the rally, but optimism will still remain that and the ETF will eventually get done."

Crypto analyst Michael Van de Poppe predicts that the current cycle in cryptocurrencies will likely be reminiscent of the 2015-2017 period. "Institutional investors are the big guys. They’ll balloon the markets to $10-15 trillion. 

"The markets are still small. Bitcoin is $600 billion," he said.

Santiment, the on-chain analytics firm, observes that while Bitcoin maintains its price range between $29k and $31k this week, altcoins are demonstrating positive indicators as they benefit from the profit redistribution generated by Bitcoin’s price surge.

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