On Tuesday, the price of bitcoin increased by 6%, reaching $35,198, its highest level in almost a year and a half, on the back of rising speculation that an exchange-traded bitcoin fund is on the verge of being launched.
This came after a 10% increase the previous day, on Monday, when Bitcoin scored its greatest day in over a year, and the bullishness rippled throughout the larger crypto market and into equities tied to the industry.
It is anticipated that demand will increase in response to any clearance given by the United States Securities and Exchange Commission (SEC) of an exchange-traded fund (ETF) that holds bitcoin on behalf of fund investors.
According to this line of reasoning, introducing a spot bitcoin exchange-traded fund (ETF) would provide investors who were previously apprehensive of cryptocurrencies access to the commodity via the stock market, bringing a fresh wave of cash into the industry.
According to Steen Jakobsen, the Chief Investment Officer of Saxo, “the value of… any asset, is the number of people using it.” “So the ETF would reach a large audience and increase liquidity.”
Bitcoin, a volatile currency whose price has more than quadrupled this year, was last seen trading at $34,129, an increase of 3.2% from the previous day. Ether, the second-largest cryptocurrency, reached a new high not seen since August.
During after-hours trading, the price of crypto-related stocks such as those held by major U.S. exchange Coinbase Global (COIN.O) and bitcoin owner MicroStrategy (MSTR.O) increased.
One of the most prominent investment companies in the United States, BlackRock (BLK.N), is now applying to a bitcoin exchange-traded fund (ETF).
The placement of BlackRock’s iShares ETF on the website of the clearing house DTCC contributed to the spread of rumors regarding the likelihood of their acceptance. It was not obvious when or why the iShares ETF was added to the DTCC list, nor was it evident when it was introduced. Both DTCC and BlackRock did not react immediately to requests for comments.
In addition, there have been indications this month, some of which came from Reuters, suggesting the SEC will not appeal a court verdict that found it incorrect to deny an ETF application from the cryptocurrency business Grayscale Investments. These stories contributed to an increase in anticipation.
The likelihood of the SEC approving an exchange-traded fund (ETF) increases, according to Geoffrey Kendrick, head of digital assets research at Standard Chartered.
BlackRock refuted a story from the previous week that incorrectly said that its ETF had been approved.
Data on the site for the examination of crypto derivatives During the previous twenty-four hours, Coinglass highlighted significant bitcoin short-covering activity.
