Bitcoin Passes $34,000—A Nearly 18-Month High Amid ETF Speculation
On Tuesday, the value of Bitcoin reached over $34,000, which hasn't happened in almost a year and a half. This increase is due to the anticipation of a Bitcoin exchange-traded fund that would increase the visibility of cryptocurrency in the stock market.
Bitcoin has surged past the $34,000 mark, reaching a value not seen since May 2022.
The most precious digital currency in the world experienced a significant rise, reaching up to $34,557 and eventually stabilizing at $33,962 at the beginning of Tuesday. This is its highest value since May 2022.
Bitcoin has experienced a growth of over 10.5% in the last day, and its worth has multiplied by two since the beginning of the year.
The digital currency Ethereum, which is ranked second to Bitcoin in terms of market capitalization, saw a rise of over 7.2% on Tuesday compared to the previous day. This increase pushed the value of Ethereum over the $1,800 threshold for the first time in almost 60 days.
The sudden increase in value has been motivated by the belief that the green light for a Bitcoin exchange-traded fund is very close, following a legal decision that went against the Securities and Exchange Commission in August.
Reuters reported that the rumors have been stirred even more due to the registration of BlackRock's iShares Bitcoin ETF on DTCC's clearing firm website.
Investors who are part of the stock market can invest in Bitcoin through an exchange-traded fund without having to directly hold the highly changeable cryptocurrency. These Bitcoin ETFs are expected to attract more retail investors to the currency because they eliminate the need to depend on cryptocurrency exchanges or establish a digital currency wallet.
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Apart from Blackrock, leading financial organizations such as Fidelity, Ark Invest, and Invesco have submitted requests for a Bitcoin ETF. In case Blackrock's application gets the green light, it might motivate other firms to do the same.
During the month of August, a court of appeals for the federal government made a decision that favored Grayscale, a company managing cryptocurrency assets, in a legal case against the SEC. Previously, the regulator had rejected Grayscale's petition to transform its mutual fund for Bitcoin into an ETF, or exchange-traded fund. Not only did the SEC deny Grayscale, but also numerous other applicants looking for permission to create a Bitcoin ETF. The SEC's reasoning was that these applicants had not proved they could protect against the risk of market manipulation.
According to a Forbes report, Grayscale has triumphed over the SEC in a legal dispute. As a result, the financial watchdog has been ordered to reconsider Grayscale's Bitcoin ETF request.
