Huge Surge in Bitcoin Price Prompts Speculation of US ETF Approval
Cryptocurrency Bitcoin soared by 16% to an 18-month high of $35,080.66 in early Asia trading on Tuesday, amidst speculations of the US approving a Bitcoin exchange-traded fund (ETF) soon. The surge in price also led to a significant increase in the prices of crypto-related shares and smaller rival Ethereum.
Bitcoin and Ethereum Prices Skyrocket
According to data from Binance, Bitcoin’s price shot up by 16% to $35,080.66, while Ethereum witnessed a nearly 9% surge to $1,830, breaking above its 200-day moving average. This spike in prices coincided with a rise in the prices of crypto-related shares, such as exchange Coinbase Global, miner Marathon Digital, and Bitcoin holder MicroStrategy, in after-hours US trade.
Anticipation of Bitcoin ETF Approval Grows
The anticipation of a Bitcoin exchange-traded fund approval has been growing following reports, including from Reuters, that the US Securities and Exchange Commission (SEC) is unlikely to appeal a ruling that rejected an application from Grayscale Investments. It is believed that a Bitcoin ETF approval would drive broader flows into the cryptocurrency, as it would allow a wider set of investors to buy exposure without directly trading it.
Blackrock’s Involvement in ETF Launch
Speculation about the imminent approval of a Bitcoin ETF was further fueled by evidence from the Depository Trust and Clearing Corporation (DTCC) website, which suggests that investment firm Blackrock is preparing for the ETF’s launch. Blackrock’s iShares ETF was listed on the website of the clearing house DTCC, prompting further speculation about its approval being imminent. Moreover, an SEC approval of the ETF could pave the way for the approval of many other Bitcoin ETF applications from firms like VanEck, WisdomTree, Fidelity, Bitwise, and Invesco.
Bitcoin’s Market Cap Surges
The surge in Bitcoin’s price has led to a 107% increase in its market value this year, adding over $300 billion to its market capitalization, which now stands at $670 billion. The cryptocurrency is also being viewed as a safe haven asset amidst worsening geopolitical tensions.
The surge in Bitcoin’s price and the anticipation of a potential ETF approval have generated considerable interest and optimism within the crypto community, as these developments could potentially open up new avenues for investment in the digital asset.
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