Bitcoin Glitters
ISLAMABAD: Bitcoin experienced a notable upswing of approximately 15.84% on Monday, fueled by expectations of increased demand from exchange-traded funds (ETFs). Market participants are placing their bets on the imminent approval of BlackRock’s ETF filing.
The largest cryptocurrency has now surpassed $35,000 for the first time since May 2022 and is presently trading at $34,490. This surge has boosted its year-to-date gains to approximately 108.38%.
The prospect of forthcoming approval for the first US spot Bitcoin ETFs has ignited a fervor of speculation surrounding the cryptocurrency, as reported by Bloomberg. Major asset management firms, including BlackRock Inc. and Fidelity Investments, are in a competitive race to introduce such investment products. Proponents of digital assets argue that ETFs would significantly expand the adoption of cryptocurrency.
In a significant development, a US federal appeals court recently upheld a victory for Grayscale Investments LLC, paving the way for the creation of a spot Bitcoin ETF, despite objections from the US Securities and Exchange Commission (SEC). The SEC has been cautious about permitting ETFs directly investing in Bitcoin due to concerns about risks like fraud and market manipulation. The court ruling and the influx of applications from prominent investment firms to launch spot funds have led to speculations that the regulatory agency may reconsider its stance.
Eric Balchunas, an ETF analyst at Bloomberg Intelligence, highlighted on X (formerly known as Twitter) that the iShares Bitcoin Trust has been listed on the Depository Trust and Clearing Corp. (DTCC) with the ticker IBTC. BlackRock, the world’s largest asset manager, operates the iShares business. While this listing does not constitute official approval, it marks a significant step towards ETF launch readiness.
Bitcoin had experienced a 10% intraday surge at the beginning of last week due to ETF-related excitement. However, on that occasion, a false report erroneously claiming that BlackRock had received approval for a fund triggered the rally, which subsequently cooled when the error was corrected.
Ether, the second-largest cryptocurrency, also rose by 6.4% to surpass $1,800 on Tuesday, following Bitcoin’s lead. Smaller cryptocurrencies like BNB, XRP, and the meme-crowd favorite Dogecoin also saw gains.
Data from Coinglass reveals that roughly $387 million worth of cryptocurrency trading positions, mostly held by speculators who were betting on lower prices, were liquidated in the past 24 hours.
