In the newest occurrence, the price of Bitcoin experienced a significant surge of approximately 10% on Tuesday, reaching a notable milestone of $34,872. This marks the highest value Bitcoin has achieved in almost eighteen months. The surge in price is primarily attributed to growing speculation surrounding the imminent launch of an exchange-traded Bitcoin fund.
The Most Successful Day of the Year for BTC
Following a significant increase of 10% on Monday, bitcoin experienced its most successful day in nearly a year. This surge in value had a positive impact on the broader cryptocurrency market, as well as related stocks.
A rise in demand among investors is likely to occur due to the possibility that the SEC would bless the creation of an ETF backed by bitcoin. The potential introduction of a spot bitcoin exchange-traded fund (ETF) has sparked discussions regarding its possible benefits to the cryptocurrency market.
Advocates argue that such an ETF would allow cautious investors to enter the crypto space through traditional stock market channels, potentially leading to an influx of capital into the industry.
Bitcoin, a digital currency known for its price volatility, has experienced a significant increase in value this year. Currently, it is showing a rise of 7.87% and is priced at $34,020. This marks the highest level it has reached since May 2022.
During the trading hours in Asia, the asset’s price surpassed the $35,000 mark. Ether, the second-largest cryptocurrency by market capitalization, experienced a notable surge as it rose by 4.50% to $1,786.30. This price level represents its highest point since August.
Shares of prominent U.S. exchange Coinbase Global (COIN.O) and bitcoin holder MicroStrategy (MSTR.O) experienced notable increases of over 7% and 12%, respectively.
All Investors Are Awaiting Final ETF Adoption
According to Antoni Trenchev, co-founder of digital asset firm Nexo, there is a growing sense of anticipation within the cryptocurrency market. The focus is now on the Securities and Exchange Commission (SEC) to determine if significant developments will materialize. Trenchev expressed this sentiment in an email statement.
BlackRock, a prominent investment firm, is one of several significant financial institutions in the United States that have submitted applications for bitcoin exchange-traded funds (ETFs).
Speculation regarding the potential approval of BlackRock’s iShares ETF has been heightened due to the recent ETF listing on the clearing house DTCC website. Adding the iShares ETF to the DTCC list has raised questions regarding the timing and rationale behind this decision. The DTCC and BlackRock have yet to respond to inquiries for comment.
Anticipation has been on the rise following recent reports, including one from Reuters, indicating that the Securities and Exchange Commission (SEC) will not challenge a court decision that deemed the agency’s rejection of an exchange-traded fund (ETF) application by cryptocurrency company Grayscale Investments as erroneous.
In a recent development, the court has officially ratified its decision, leading to the application being returned to the Securities and Exchange Commission (SEC) for a thorough examination.
According to Geoffrey Kendrick, the head of digital assets research at Standard Chartered, the likelihood of an ETF approval is heightened as the courts exert pressure on the SEC.
Data on a cryptocurrency derivatives analysis platform has been recently released, providing valuable insights into the market trends and trading activities. The platform, which specializes in analyzing various derivatives products related to cryptocurrencies, offers a comprehensive overview of the market dynamics and helps traders make informed decisions.
The newly released data sheds light on the performance. According to recent market data, there has been a significant increase in short-covering activity for Bitcoin on the Coinglass platform within the past 24 hours.
