Changes to identify Bitcoin ETF applications and remarks made by institutional investors may have contributed to the recent improvements in investor sentiment regarding Bitcoin. Bitcoin has proven resilient in the face of persistent macroeconomic difficulties in the US, hitting an intraday high of $28,516. The growing interest and engagement of institutions in Bitcoin can be associated with its price stability.

Revisions to Fidelity Investments' proposed spot Bitcoin exchange-traded fund, dubbed the Wise Origin Bitcoin Trust, were filed with the Securities and Exchange Commission (SEC) on October 17. The changes made by Fidelity address the regulatory uncertainties surrounding cryptocurrencies and provide plans for protecting customers' Bitcoin in custody accounts.

Fidelity is in step with other big players, such as ARK Invest and Invesco, who also updated their spot Bitcoin ETF applications. These moves show that the SEC and Fidelity are in constant communication. Cathie Wood, the CEO of ARK Invest, verified this interaction with the SEC, signaling a change in regulatory approach and enhancing the prospects for Bitcoin.

The Grayscale Bitcoin Trust (GBTC), an ETF-like investment product, is the lowest net asset value (NAV) premium discount that Grayscale has offered since December 9, 2021. On October 14, Grayscale won their fight against the SEC when the agency chose not to file an appeal of a court decision, enabling the ETF to proceed.

The SEC is still delaying approving Bitcoin ETFs, though. According to some analysts, if approval is eventually granted, there may be a new demand for Bitcoin worth over $600 billion. CEO of BlackRock Larry Fink highlighted that the recent rally was motivated by a flight to quality, which was impacted by world events such as the Israeli conflict and concerns about terrorism.