For the first time in almost 18 months, today the prices of Bitcoin they have exceeded 34 thousand dollars thanks to the rumors of a new ETF linked precisely to Bitcoin which would provide greater exposure to the cryptocurrency on traditional stock markets.
- Today, the world’s most valuable cryptocurrency rose to as high as $34,557, before stabilizing at $33,962, thus reaching its highest level since May 2022.
- In the last 24 hours, the price of Bitcoin has increased by more than 10.5%, and the value of the token has doubled since the beginning of the year.
- Ethereum, the world’s second most valuable cryptocurrency, also rose more than 7.2% since Monday, surpassing the $1,800 mark for the first time in nearly two months.
- This increase was driven by rumors of an imminent approval of a Bitcoin ETF, following an August court ruling against the Securities and Exchange Commission.
- Second Reutersthe rumors were further fueled by the listing of BlackRock’s iShares Bitcoin ETF on the website of DTCC, a company that provides clearing and settlement services to financial markets.
An ETF would allow stock market investors to invest in Bitcoin without having to hold the cryptocurrency directly. Bitcoin ETFs would likely attract more retail investors to the token, as they would eliminate the need to rely on cryptocurrency exchanges or have to set up a cryptocurrency wallet.
What to look out for
In addition to BlackRock, other important ones financial institutions, such as Fidelity, Ark Invest and Invesco, have submitted applications for a Bitcoin-related ET. If BlackRock’s request is approved soon, it could encourage other institutions to do the same. The approval of a Bitcoin ETF by a major asset management firm could pave the way for additional cryptocurrency-related financial products from other companies. This could have a significant impact on the cryptocurrency market and make investing in Bitcoin more accessible for traditional investors.
Last August, a federal appeals court ruled in favor of American digital currency asset management company Grayscale in its lawsuit against the SEC. The regulator had previously rejected Grayscale’s request to convert its Bitcoin ETF into a publicly traded mutual fund. In addition to Grayscale’s, the SEC had blocked numerous other applications for Bitcoin-related ETFs, arguing that the applicants had not demonstrated how they would defend against market manipulation.
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The post first appeared on forbes.it