Bitcoin, the leading cryptocurrency, has seen its value rise by 20% over the past week, touching almost $35,000, a peak not seen in 18 months. Speculations are rife about the reasons behind this uptick. A major contributing factor seems to be the anticipation of cryptocurrencies. Primarily bitcoin, making their way into mainstream investments through exchange-traded funds (ETFs).
For those unfamiliar, ETFs are investment instruments that can be traded on stock exchanges, much like regular stocks. They generally track a specific index, commodity, or asset. Specifically, a spot bitcoin ETF, which tracks bitcoin’s price, allows investors to delve into bitcoin investments without the need for managing a crypto wallet or account.
BlackRock, a significant player in the investment world, has added fuel to the fire surrounding the excitement of bitcoin ETFs. The Depository Trust and Clearing Corporation recently included BlackRock’s spot bitcoin ETF in an eligibility list. While the ETF is still pending U.S. Securities and Exchange Commission (SEC) approval, many are viewing this inclusion as an indication of an impending approval.
However, as Samer Hasn from XS.com online brokerage clarifies, being on the DTCC’s list doesn’t confirm the ETF’s launch but suggests BlackRock’s intent to roll it out soon. (CNN)
Earlier this year, an SEC decision to decline a spot bitcoin ETF application from crypto management company Grayscale was overturned by the U.S. Court of Appeals for the District of Columbia Circuit. The court observed that the SEC hadn’t provided a sufficient rationale for the denial.
Given these developments, the crypto market’s sentiment leans towards a probable mainstream acceptance through ETFs. Sentiment that’s significantly driving up cryptocurrency valuations. Markus Thielen from Matrixport reaffirms this sentiment, highlighting the importance of the possible launch of a U.S.-listed spot bitcoin ETF, according to a report from CoinDesk.
