“Bitcoin’s meteoric rise towards an 18-month high has investors on the edge of their seats, fueled by mounting speculation about the potential approval of a Bitcoin ETF, adding a new layer of excitement to the already booming cryptocurrency market.”
Bitcoin Hits Highest Price in Nearly a Year and a Half
Bitcoin experienced a 6% rise on Tuesday, reaching $35,198, its highest price in almost a year and a half. This surge is largely attributed to growing speculation surrounding the imminent approval of an exchange-traded bitcoin fund. On Monday, bitcoin saw a 10% increase, marking its best day in nearly a year. This bullish trend has extended to the wider crypto market and related stocks.
Many believe that the approval of a spot bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) will drive further demand for the cryptocurrency. The argument is that a bitcoin ETF would provide access to the asset for investors who were previously hesitant about cryptocurrency, attracting new capital to the industry.
Steen Jakobsen, the Chief Investment Officer at Saxo, explains, “The value of any asset, basically, is the amount of people using it. So the ETF would make a large audience and increase liquidity.”
Bitcoin, known for its volatility, has already doubled in price this year and is currently up 3.2% at $34,129. Ethereum, the second-largest cryptocurrency, also reached its highest price since August.
Shares of companies linked to the crypto industry, such as Coinbase Global and MicroStrategy, experienced an increase in after-hours trade.
Several major U.S. financial firms, including BlackRock, have pending applications for bitcoin ETFs. Speculation about their approval grew after BlackRock’s iShares ETF appeared on the website of clearing house DTCC. However, it remains unclear when or why the iShares ETF was added to the list, and both DTCC and BlackRock have yet to comment.
Anticipation for ETF approval was further fueled by reports that the SEC will not appeal a court ruling stating that it was wrong to reject an ETF application from Grayscale Investments.
Geoffrey Kendrick, the head of digital assets research at Standard Chartered, believes that the SEC’s pressure from the courts increases the likelihood of an ETF approval.
BlackRock recently denied false reports claiming that its ETF had already been approved.
Data from crypto derivatives analysis site Coinglass showed a significant increase in bitcoin short-covering in the past 24 hours.
Overall, the crypto market continues to show strength, with bitcoin leading the way and investors eagerly awaiting the potential approval of a bitcoin ETF.