Bitcoin’s surge above $34,000 signifies a strong comeback for the crypto market, instilling renewed confidence among investors, while also presenting an opportunity for renowned investor Cathie Wood to capitalize on the digital currency’s remarkable growth.
Cryptocurrency prices are on the rise as bitcoin continues to rally. Bitcoin’s price has increased by nearly 12.4% over the past 24 hours and is now trading at its highest level since May 2022.
The recent surge in bitcoin’s price is attributed to the hope that a spot bitcoin exchange-traded fund (ETF) will be launched soon. This optimism comes after the Securities and Exchange Commission (SEC) declined to challenge Grayscale Investments’ court loss and its effort to convert its Grayscale Bitcoin Trust into a spot bitcoin ETF.
A U.S. appeals court has now ordered the SEC to review Grayscale’s ETF application, increasing the chances of approval. If approved, a spot bitcoin ETF would provide a regulated and accessible way for institutions to gain exposure to bitcoin. This would also signify institutional confidence in the broader cryptocurrency ecosystem and lead to greater demand from asset managers.
Industry players, including Coinbase and ARK Invest, are optimistic about the approval of a spot bitcoin ETF. The CEO of ARK Invest, Cathie Wood, expects approval to happen either this year or in early 2024.
Meanwhile, Cathie Wood and ARK Invest have taken advantage of the recent rally to sell some of their holdings. They sold shares of Coinbase stock and Grayscale’s Bitcoin Investment Trust.
Bitcoin’s price increase has also had a positive impact on other cryptocurrencies. Ethereum has rallied over 10% in the past 24 hours.
Overall, the cryptocurrency market is experiencing a surge in prices due to the anticipation of a spot bitcoin ETF. This development could have significant implications for the broader cryptocurrency ecosystem and attract more institutional investors.
Note: The content above is for informational purposes only and should not be construed as financial advice.