Market News

Bitcoin Surges to 17-Month High Amid Soaring ETF Optimism

17Month, Bitcoin, ETF, High, Optimism, Soaring, Surges

“Bitcoin’s impressive surge to a 17-month high reflects the growing optimism surrounding the potential approval of a Bitcoin ETF, signaling a major milestone in the mainstream acceptance of cryptocurrencies.”

Bitcoin Surges to 17-Month High on Speculation of US Approval for ETFs

Bitcoin, the world’s oldest and most actively traded cryptocurrency, has reached a 17-month high, recovering from last year’s crash. The surge in price, which saw the digital currency jump more than 10% in the past 24 hours to $35,000 per token, is attributed to growing speculation that the US Securities and Exchange Commission (SEC) will approve exchange-traded funds (ETFs) that invest directly in bitcoin.

This rise in bitcoin’s value means that it has now fully recovered from the losses it suffered following the collapse of Terra stablecoin last May. The sudden downfall of Terra caused a crisis of confidence and led to the collapse of several high-profile companies, including Celsius and FTX exchange.

The surge in bitcoin’s price is driven by hopes that the SEC will change its decade-long policy of rejecting spot ETFs. Major financial institutions such as BlackRock, Franklin Templeton, VanEck, and WisdomTree have submitted filings with the SEC, hoping for their bitcoin ETFs to be approved. If the SEC accepts a spot bitcoin ETF application, it would validate bitcoin as an established asset class and allow major institutions to invest in the cryptocurrency.

Proponents of bitcoin ETFs argue that they offer consumers a safer and more affordable way to trade the token compared to unregulated crypto exchanges. However, the SEC has expressed concerns about the potential manipulation of the bitcoin market.

The SEC has faced pressure since a Washington court ruled against the agency, stating that it was wrong to reject asset manager Grayscale’s application to turn its flagship vehicle, Grayscale Bitcoin Trust, into an ETF.

Traders believe that Tuesday’s gains were driven by the listing of BlackRock’s planned bitcoin ETF at the main clearing house of the US securities market. An updated filing from BlackRock revealed that an unnamed investor intends to buy shares in the ETF, which is a common practice for new or upcoming ETFs to attract capital.

Traders have been positioning themselves for a potential increase in bitcoin’s price if an ETF is approved. Earlier this month, the price of bitcoin rose by more than 8% due to false rumors on social media about the approval of BlackRock’s application.

While investors have put $179 million into digital asset funds in the past four weeks, CoinShares, an investment group, noted that the inflows were lower than the $807 million that flowed into funds in the four weeks after BlackRock’s initial filing last June. This suggests a more cautious approach from investors this time around.

The SEC is expected to make its first rulings on the ETF filings at the beginning of next year.

Leave a Comment