“Bitcoin and Ethereum soar to new heights as anticipation builds for big investors to seize the opportunity presented by ETFs.”
Bitcoin Surges 11.65% in 24 Hours Amidst Growing ETF Speculation
Bitcoin has experienced a significant surge in value over the past 24 hours, signaling a potentially game-changing move for cryptocurrencies. As of 12.20pm on Tuesday, the digital currency has seen an impressive 11.65% increase, representing a remarkable 68% rise since the same time last year. With a single coin now worth $52,937, other popular coins such as Ether, Solana, and Dogecoin have also followed suit with notable gains.
This surge in value is primarily attributed to the growing anticipation of a bitcoin exchange-traded fund (ETF) by major investment firms. According to Reuters, the excitement surrounding an ETF has intensified after reports surfaced this month that the U.S. Securities and Exchange Commission (SEC) will not appeal a ruling that deemed its rejection of an application from Grayscale Investments as incorrect.
The prospect of an ETF has excited crypto investors because it would enable a broader range of investors to gain exposure to cryptocurrencies without directly trading them. Matthew Dibb, Chief Investment Officer at crypto asset manager Astronaut Capital, noted, “The market is doing its best to front-run the approval of a physical BTC ETF, with consensus being that it will happen sometime in the next three months, if not sooner.”
Several major firms, including BlackRock, VanEck, WisdomTree, Fidelity, Bitwise, and Invesco, have pending bitcoin ETF applications. If approved, these ETFs could have a profound impact on the cryptocurrency market and further solidify bitcoin’s position as a mainstream investment asset.
In other financial news, the Australian sharemarket experienced a midday rise on Tuesday, despite fluctuations in bonds. The benchmark S&P/ASX 200 index climbed 0.3%, or 23.2 points to 6867.3, driven by gains in the financials and energy sectors. Meanwhile, Wall Street stocks closed mixed on Monday as investors closely monitored US Treasury yields and awaited key earnings and economic data later in the week.
Although major indices initially opened lower due to the 10-year US Treasury note yield surpassing five percent for the first time in 16 years, a subsequent decrease in yields provided a boost to large technology companies. Google parent Alphabet, Amazon, and Microsoft shares all rose in anticipation of upcoming earnings reports. The tech-centered Nasdaq Composite Index finished up 0.3%, the Dow Jones Industrial Average dropped 0.6%, and the S&P 500 shed 0.2%.
The rise in bond yields has raised concerns about the potential for higher Federal Reserve interest rates in the future, which could dampen economic growth prospects.
With the possibility of a bitcoin ETF and ongoing market fluctuations, the financial landscape remains dynamic and unpredictable. Investors and enthusiasts alike will be closely watching for further developments and their potential impact on the cryptocurrency and traditional markets.