“Bitcoin surges as hopes for wider adoption fuel its momentum in the trading world.”
Bitcoin’s price has been on the rise in recent weeks, fueled by speculation around the approval of a bitcoin exchange-traded fund (ETF) in the United States. An ETF would allow investors to trade in bitcoin without having to directly buy the cryptocurrency. Experts believe that approval for a spot bitcoin ETF is now a matter of when, not if.
With a market capitalization of around $670 billion, bitcoin is the largest cryptocurrency in the world. Its price has doubled since the beginning of the year, briefly surpassing $35,000 last week. Some investors see bitcoin as a safe haven amid economic and geopolitical unrest.
The enthusiasm around a possible approval of a spot bitcoin ETF has contributed to the recent rebound in bitcoin’s price. Larry Fink, the CEO of Blackrock, believes that the rally is not just a rumor but also a result of a flight to quality amid global issues.
The US Securities and Exchange Commission (SEC) is currently re-examining the application for a bitcoin ETF made by Grayscale, as well as other requests from financial groups like BlackRock and Ark Invest. The first decision from the SEC is expected by January 10.
Experts compare the potential approval of a bitcoin ETF to the approval of an ETF for gold at the start of the millennium. They believe that it could lead to a gradual push into bitcoin trades and further legitimize the cryptocurrency as a trusted asset.
Analysts also predict that rival cryptocurrencies, like ether, could eventually have their own spot ETFs. Sui Chung, the CEO of CF Benchmarks, expects the SEC to approve several bitcoin ETFs at once, which could pave the way for ETFs tracking other cryptocurrencies.
Regardless of the SEC’s decision on the ETFs, bitcoin’s current price recovery is seen as a positive development for the cryptocurrency sector, which has faced bankruptcies and scandals in recent years.
In conclusion, the potential authorization of a bitcoin ETF in the United States is generating excitement and driving up the price of bitcoin. If approved, it would make it easier for investors to trade in the cryptocurrency and further legitimize it as a trusted asset.