SEC Proposal Boosts Bitcoin Price Amid Institutional Demand
The price of Bitcoin (BTC) has risen 0.57% to $85,108, but it underperforms the broader market's 0.77% increase.
This modest gain is largely driven by a macro-driven uptick across crypto assets.
The SEC plans to propose a new rule under the Investment Company Act of 1940 that would allow investment advisers to directly hold Bitcoin and other digital assets when no qualified custodian is willing to custody them.
This proposal is in response to the existing custody framework having a compliance gap, as traditional custodians typically refuse to custody such assets.
Total assets under management for U.S. spot Bitcoin ETFs have reached $111.07 billion, up from $99.7 billion a month prior, representing sustained institutional demand.
Market analysts note that BTC's 0.57% gain closely tracks the total crypto market cap's 0.77% increase, suggesting a flow-driven uptick rather than a news-fuelled surge.