“Bitcoin soars to new heights, smashing through the $34,000 barrier and reigniting the cryptocurrency frenzy, reminiscent of the exhilarating bull run of May 2022.”
Bitcoin experienced a significant spike on Tuesday, reaching $35,100, its highest value in almost a year-and-a-half. This surge comes amidst growing speculation that an exchange-traded fund (ETF) for bitcoin is on the horizon.
The 10% increase on Monday marked bitcoin’s best day in nearly a year and had a positive impact on the wider cryptocurrency market and related stocks. Analysts suggest that the approval of a bitcoin ETF by the US Securities and Exchange Commission (SEC) would enable investors who were previously hesitant about cryptocurrencies to access the asset through the stock market. This development could potentially bring a new wave of capital into the sector.
Major financial institutions like BlackRock have pending applications for ETFs, further fueling expectations for approval. BlackRock’s iShares ETF was recently listed on the website of the Depository Trust & Clearing Corporation (DTCC), leading to speculation about the likelihood of approval. However, it is still uncertain when or why the iShares ETF was added to the clearing house’s list.
Last week, BlackRock denied reports that its ETF had been approved, emphasizing the need for accurate information. Nevertheless, hopes for approval grew after the SEC opted not to appeal a court ruling that deemed its rejection of a bitcoin ETF application from Grayscale Investments as unjust.
Geoffrey Kendrick, the head of digital assets research at Standard Chartered, believes that the SEC’s pressure from the courts increases the probability of an ETF approval. Bitcoin’s price has been volatile, but it has doubled so far this year. Meanwhile, the second-largest cryptocurrency, ether, also experienced gains, reaching its highest value since August.
Notably, the value of bitcoin in euros surpassed €32,000 on Tuesday, marking its highest value since May 2022. This upward trend reflects the growing interest and potential for cryptocurrencies in the financial market.