Bitcoin Surges Past $35,000, Awaiting ETF Approval

Bitcoin has skyrocketed, surpassing $35,000 for the first time since May 2022, marking a 20% surge over the past five days.

This famously volatile cryptocurrency has more than doubled in value this year. Investors are increasingly excited about the possibility of purchasing bitcoin funds via well-regulated stock exchanges, bypassing the less-regulated and occasionally questionable crypto platforms, such as FTX and Binance.

The recent surge in enthusiasm stems from BlackRock’s exchange-traded fund (ETF) for bitcoin appearing on a list managed by the Depository Trust and Clearing Corp., a clearinghouse for stocks and ETFs operated by Nasdaq. BlackRock submitted an application in June to register a bitcoin spot ETF, awaiting approval. As the world’s largest ETF provider managing trillions of dollars in assets, the introduction of a BlackRock bitcoin ETF would lend greater legitimacy to the cryptocurrency.

Bitcoin
A BlackRock bitcoin ETF would give the cryptocurrency a new sense of legitimacy. Source/ Internet

Samer Hasn, a market analyst at online brokerage XS.com, explains, “This listing in the DTCC does not mean that the fund has actually been launched or that this will inevitably happen. However, it may appear as part of BlackRock’s preparations to launch the ETF soon.”

Several other companies have also sought approval to launch similar bitcoin ETFs, with Grayscale Investments among them. Although the US Securities and Exchange Commission initially rejected Grayscale’s ETF, a three-judge panel for the DC Court of Appeals overruled this decision in August, stating that the regulator had inadequately explained its rejection.

Despite these positive developments, the SEC has yet to approve the fund, leading some to believe that investors might be getting ahead of themselves. Samer Hasn remarks, “I think that these rapid rises in bitcoin are somewhat exaggerated. Regulatory and legislative concerns are still clouding this market, and I don’t see opportunities soon to dispel these concerns as the legal battles continue.”

Another factor contributing to bitcoin’s rise is fear. In uncertain times, investors seek portfolio diversification, and some view bitcoin as a digital safe haven. Often referred to as “digital gold,” bitcoin offers a way for investors to expand beyond traditional stocks and bonds.

See also: Post-Pandemic Consumer Spending Trends

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