In a striking development, Bitcoin experienced a remarkable 6% surge on Tuesday, reaching an impressive $35,198, marking its highest value in nearly 18 months. This surge is fueled by mounting speculation that an Exchange-Traded Fund (ETF) dedicated to Bitcoin is on the horizon.
ETF Approval Potential
This substantial increase follows a significant 10% rise on Monday, making it Bitcoin’s best day in nearly a year. This surge also extended its positive influence across the broader cryptocurrency market and related stocks.
The potential approval of an ETF by the U.S. Securities and Exchange Commission (SEC) to hold Bitcoin on behalf of fund investors is predicted to ignite increased demand. The argument supporting a spot Bitcoin ETF suggests that it could provide hesitant investors with a gateway to cryptocurrency through the stock market, thus bringing in a new wave of capital to the crypto sector.
Read More: Bitcoin Surges Amid BlackRock ETF Rumors
Expert Opinion
Steen Jakobsen, CIO at Saxo, shares his insights, stating, “The value of any asset, basically, is the amount of people using it.” He goes on to explain that the ETF would open up access to a broader audience and enhance liquidity.
As of the latest update, Bitcoin, a notoriously volatile asset whose value has doubled this year, is up by 3.2% at $34,129. Ethereum, the second-largest cryptocurrency, has also seen gains, reaching its highest point since August.
Crypto Market Uptick
This surge in Bitcoin has also positively impacted crypto-related stocks, with prominent players like U.S. exchange Coinbase Global (NASDAQ:COIN) and Bitcoin holder MicroStrategy seeing increases in after-hours trading.
Notably, major financial institutions such as BlackRock (NYSE:BLK) have pending applications for Bitcoin ETFs, raising speculation about their potential approval. Recent developments on the website of the clearing house DTCC, which listed BlackRock’s iShares ETF, have further fueled anticipation.
It is important to note that the SEC’s reluctance to appeal a court ruling that rejected an ETF application from crypto firm Grayscale Investments has increased the likelihood of ETF approval, according to Geoffrey Kendrick, the head of digital assets research at Standard Chartered (OTC:SCBFF).
In response to previous reports, BlackRock clarified that its ETF had not yet been approved. Data from the crypto derivatives analysis site Coinglass revealed substantial short-covering of Bitcoin in the last 24 hours. The cryptocurrency market continues to be a focal point of speculation and intrigue.
This surge in Bitcoin value, driven by ETF anticipation, has investors and the financial world eagerly watching for further developments.
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Disclaimer:
Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
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