Traders may be placing bets on an event that raises expectations for a spot bitcoin ETF in the US

As a result of hopeful expectations that a bitcoin exchange-traded fund (ETF) would be approved soon, the price of bitcoin (BTC) increased by about 4.5% during the Asian morning hours on Monday.

Bitcoin reversed all weekly losses to trade under $28,000. The increase appeared to be a follow-up to the reaction on Friday to the Securities and Exchange Commission's (SEC) decision not to file an appeal in response to a recent Grayscale judgement.

A person with knowledge of the situation claims that the SEC won't appear to challenge a court's decision to reverse Grayscale's decision to convert its well-liked bitcoin trust into a more investor-friendly exchange-traded fund, paving the way for the first bitcoin ETF in the United States.

This increased the possibility of converting the Grayscale Bitcoin Trust (GBTC) into a more desirable ETF.

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