Bitcoin Jumps As SEC Plans New Crypto Rule For Investment Advisers

Bitcoin Jumps as SEC Plans New Crypto Rule for Investment Advisers

Bitcoin (BTC) price is up 0.57% to $85,108, slightly underperforming the broader market’s 0.77% rise, driven mainly by a modest macro-driven uptick across crypto assets.

The U.S. 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.

The SEC said that traditional custodians typically refuse to custody such assets, and the existing custody framework therefore has a compliance gap. The proposal will trigger a 60-day public comment period after publication in the Federal Register.

Crypto market data showed that total assets under management for U.S. spot Bitcoin ETFs reached $111.07 billion, up from $99.7 billion a month prior.  This consistent inflow represents sustained institutional demand, providing a foundational bid for BTC’s price.

This is bullish for Bitcoin because it shows ongoing capital allocation from traditional finance, reducing selling pressure and enhancing market maturity. These regulated products act as a key conduit for long-term investment.

Bitcoin’s price is up 5.25% over the past 30 days. This stability comes as the broader crypto market sentiment sits in “Greed” territory with an index value of 67, down from 75 a month ago. High sentiment often signals an overextended market, which can precede a correction.