Topline
The price of Bitcoin crossed $34,000 for the first time since May 2022 early on Tuesday, buoyed by the expectation of an incoming Bitcoin exchange-traded fund that would provide added exposure to the cryptocurrency on the traditional stock market.
Bitcoin crossed $34,000 for the first time since May 2022.
Key Facts
The world’s most valuable cryptocurrency surged to $34,557, before settling at $33,962 early on Tuesday—its highest level in nearly a year and a half.
In the past 24 hours, Bitcoin is up more than 10.5%, and the token’s value has doubled since the start of the year.
Ethereum, the world’s second-biggest crypto asset, was also up more than 7.2% compared to Monday, breaching the $1,800 mark for the first time in nearly two months.
The surge has been driven by the expectation that the approval for a Bitcoin ETF is imminent after a court ruling against the SEC in August.
According to Reuters, the speculation has been further fanned by the listing of BlackRock’s iShares Bitcoin ETF on the website of clearing firm DTCC.
News Peg
An exchange-traded fund would allow investors on the stock market to invest in Bitcoin without having to directly hold the volatile cryptocurrency. Bitcoin ETFs would likely draw more retail investors towards the token, as it would do away with the need to rely on crypto exchanges or set up a cryptocurrency wallet.
What To Watch For
Aside from Blackrock, major other financial institutions including Fidelity, Ark Invest, Invesco and others have filed applications for a Bitcoin ETF. If Blackrock’s application gets approved soon, it could open the floodgates, allowing others to follow suit.
Further Reading
Grayscale Wins Court Battle Against SEC, Regulator Must Review Bitcoin ETF Application (Forbes)
