Bitcoin’s value has surged recently, reaching its highest level since May of the previous year, driven by the prospect of new exchange-traded funds (ETFs) increasing demand.
On Tuesday in Singapore, it recorded a high of $35,000, reflecting a more than 100% rebound for the year after the 2022 digital currency downturn.
Speculation is rife due to the anticipated approval of the US’s first Bitcoin ETFs in the coming weeks. Major asset management firms like BlackRock and Fidelity Investments are competing to offer these products. Supporters believe these ETFs will boost the cryptocurrency’s mainstream acceptance.
Meanwhile, Grayscale Investments has overcome objections from the US Securities and Exchange Commission (SEC) to move forward with its own Bitcoin ETF.
The SEC has traditionally been hesitant about such ETFs due to concerns about market manipulation and fraud. However, the involvement of major investment companies might lead the SEC to reconsider.
Eric Balchunas, a Bloomberg Intelligence ETF analyst, highlighted on social media platform X (previously Twitter) the listing of the iShares Bitcoin Trust on the Depository Trust and Clearing Corporation under the ticker “$IBTC”.
BlackRock manages the iShares operation, while DTCC handles US market clearing and settlements. Balchunas mentioned that this doesn’t confirm its approval, but it’s a significant step towards launching an ETF.
Interestingly, a 10% increase in Bitcoin’s value occurred the previous week, mistakenly attributed to BlackRock’s fund approval. After the error was revealed, the rally subsided.
While Bitcoin experienced this upturn, Ethereum, the second-biggest digital currency, exceeded $1,800. However, other cryptocurrencies like Solana and Dogecoin saw their initial gains diminish.
Despite the recent rise, Bitcoin’s highest value remains its 2021 record of approximately $69,000. Its link to traditional assets such as stocks and bonds has weakened, prompting discussions about mainstream investors’ commitment.
“Liquidity is somewhat better than before,” said Justin d’Anethan, head of business development in the Asia-Pacific region at cryptocurrency market maker Keyrock.
“Prices have now recuperated and with it a certain amount of liquidity – still nothing compared to the euphoria of 2020 to 2021, though.”
