Bitcoin
Bitcoin Surges 6% to $35,198, Sparking Frenzy as Crypto Enthusiasts Anticipate Imminent ETF Launch”
In a stunning turn of events, Bitcoin saw a remarkable 6% increase on Tuesday, reaching $35,198, a level not seen in nearly a year and a half. This dramatic ascent was fueled by the growing anticipation that the launch of an exchange-traded bitcoin fund is right around the corner.
The excitement began with a phenomenal 10% surge on Monday, marking Bitcoin’s most outstanding performance in almost a year. The enthusiasm rippled through the broader cryptocurrency market, even extending its reach into related stocks.
Market enthusiasts are closely watching for any sign of approval from the U.S. Securities and Exchange Commission (SEC) regarding a Bitcoin exchange-traded fund (ETF). This approval is expected to ignite a surge in demand. Advocates argue that a spot Bitcoin ETF would provide access to cryptocurrencies through the stock market, attracting a new wave of capital to the sector and reducing barriers for hesitant investors.
Steen Jakobsen, CIO at Saxo, remarked, “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, a highly volatile asset that has already doubled in price this year, was last seen rising by 3.2% to $34,129. Ethereum, the second-largest cryptocurrency, also reached its highest level since August. Crypto-related stocks, such as major U.S. exchange Coinbase Global (COIN.O) and Bitcoin holder MicroStrategy (MSTR.O), experienced significant gains in after-hours trading.
It’s worth noting that investment giant BlackRock (BLK.N) is one of several major U.S. financial firms awaiting approval for Bitcoin ETFs. Speculation about their likely approval was stoked by BlackRock’s iShares ETF listing on the DTCC clearing house website, though the reason for this listing remains unclear. The SEC’s decision not to appeal a court ruling that previously rejected an ETF application from crypto firm Grayscale Investments has also heightened expectations.
Geoffrey Kendrick, Standard Chartered’s head of digital assets research, noted, “The SEC being pressured by the courts increases the probability” of an ETF approval.
Notably, BlackRock denied a mistaken report last week claiming that its ETF had been approved. Data from the crypto derivatives analysis site Coinglass indicated heavy short-covering activity in Bitcoin over the last 24 hours, adding to the intrigue surrounding the cryptocurrency market.
