Bitcoin reaches highest level since May 2022.
Bitcoin Surges to New Heights, Fueling Optimism for Exchange-Traded Fund Approval
Bitcoin is experiencing a remarkable surge, reaching levels not seen in over a year, as anticipation grows for the approval of an exchange-traded bitcoin fund. As of Tuesday afternoon, the price of bitcoin soared to approximately $33,800, briefly touching $35,000, marking its highest point since May 2022. This impressive increase represents a staggering 17.6% growth in just five days, showcasing the cryptocurrency’s exceptional performance this year compared to its disastrous run in 2022.
Housing Disaster Looms, Catching Biden’s Attention
Over the past month, bitcoin has surged by an impressive 28.6% and has achieved massive gains of over 103% since the beginning of the year. Ethereum, the second largest cryptocurrency by market cap, has also been buoyed by bitcoin’s success, experiencing a 13.5% increase in the past five days and approximately 12.5% growth in the past month. Ripple has also seen significant gains, rising by more than 11% in the past month and 21.3% in the past six months.
This surge in momentum follows a federal appeals court ruling that solidified Grayscale Investments’ victory over the Securities and Exchange Commission (SEC). In August, a three-panel judge overturned the SEC’s rejection of Grayscale’s proposal to convert its bitcoin trust into an exchange-traded fund. This ruling has further fueled institutional demand for a spot bitcoin ETF, with experts expressing confidence in the SEC’s eventual approval.
BlackRock, the world’s largest money manager, has also filed paperwork with the SEC for an exchange-traded bitcoin fund, signaling growing institutional acceptance from a major player on Wall Street. The potential approval of the iShares Bitcoin Trust would make it the first ETF with bitcoin as an underlying asset. This development, coupled with BlackRock’s involvement, has instilled confidence in the market.
Furthermore, the recent price surge may have received a boost from Rep. Tom Emmer (R-MN), who briefly emerged as the front-runner for the next speaker of the House. Emmer has actively engaged with industry leaders and crafted legislation to provide regulatory clarity for digital assets, garnering support from cryptocurrency enthusiasts.
Analysts are also predicting that the cryptocurrency market’s prolonged slump may be coming to an end. Denny Galindo of Morgan Stanley released a report highlighting indications of future growth in the crypto markets, suggesting that the “crypto winter” may be behind us and a promising “crypto spring” lies ahead.
Despite the recent gains, it is important to note that bitcoin and other major cryptocurrencies are still significantly lower than their peak values in November 2021. Bitcoin reached an astonishing $69,000 at its highest point, meaning it is currently worth approximately 51% less than its previous peak.
Click here to read more from The Washington Examiner.
What concerns and hurdles does the SEC need to address before approving a bitcoin ETF?
Months. This overall bullish trend in the cryptocurrency market has investors and industry experts optimistic about the potential approval of an exchange-traded bitcoin fund.
The long-awaited approval of an exchange-traded fund (ETF) for bitcoin has been a topic of discussion within the cryptocurrency community for quite some time. An ETF would provide investors with a regulated and easily accessible way to invest in bitcoin, without having to directly buy and store the digital asset. This would open up the market to institutional investors and potentially attract a larger pool of capital into the cryptocurrency space.
The Securities and Exchange Commission (SEC) has been hesitant to approve a bitcoin ETF in the past, citing concerns about market manipulation and investor protection. However, as the cryptocurrency market continues to mature, with growing institutional interest and increased regulatory oversight, proponents of a bitcoin ETF believe that the time is ripe for its approval.
The recent surge in bitcoin’s price only adds further weight to the argument for a bitcoin ETF. The cryptocurrency’s exceptional performance in recent months, coupled with its growing mainstream acceptance, has brought bitcoin back into the spotlight. This surge could provide the necessary impetus for the SEC to seriously consider approving a bitcoin ETF.
Approval of a bitcoin ETF would have several significant implications for the cryptocurrency market. Firstly, it would create a more accessible entry point for institutional investors, who have been largely hesitant to enter the market due to regulatory uncertainties and the lack of regulated investment vehicles. By providing a regulated and liquid market for bitcoin, an ETF would potentially attract a wave of institutional capital, further driving up the price and market liquidity.
Secondly, a bitcoin ETF would also increase market transparency and investor protection. Regulated ETFs are subject to strict reporting requirements and oversight by regulatory bodies, ensuring that investors can rely on accurate and timely information about the underlying asset. This would help alleviate concerns about market manipulation and fraudulent activities, making bitcoin a safer investment option for retail investors as well.
However, it is important to note that the approval of a bitcoin ETF is not guaranteed, and there are still several regulatory hurdles to overcome. The SEC will need to address concerns about market manipulation, custodial arrangements, and the overall stability of the cryptocurrency market. Additionally, the recent surge in bitcoin’s price could also invite increased scrutiny from regulators, who may be wary of approving a product tied to such a volatile asset.
Nevertheless, the optimism surrounding the potential approval of a bitcoin ETF is palpable. With each new milestone that bitcoin achieves, the case for a regulated investment vehicle becomes stronger. The cryptocurrency market has come a long way since its early days, and the approval of a bitcoin ETF could be a significant step towards its mainstream adoption.
As the cryptocurrency market continues to evolve and mature, it is crucial for regulators to strike the right balance between innovation and investor protection. The potential approval of a bitcoin ETF could be a key milestone in achieving this balance, providing investors with a regulated and accessible way to participate in the digital asset class. For now, the industry eagerly awaits the SEC’s decision, which could have far-reaching implications for the future of bitcoin and the broader cryptocurrency market.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...