Bitcoin reached to the top boost in sentiment about exchange-traded funds (ETFs) after surpassing the $34,000 level in May last year, reaching its highest point.
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According to Coin Metrics data, the world’s largest cryptocurrency was trading at $34,596.40, up 4.97% on Tuesday.
According to Coin Metrics data, the second-largest digital currency reached its highest level since August.
Ryan Rasmussen, who is a analyst at Bitwise Asset Management, said that the true catalyst that made today ‘Momentum Monday‘ and Basically above $34,000 Bitcoin was a $167 liquidation ,mainly on offshore exchanges .
Rasmussen said , “I don’t think we’re at the price level that anyone anticipated, and investors who were selling Bitcoin in the range above $33,000 are surely feeling the pain today.”
The expectation for a Bitcoin ETF approval has increased after the U.S. Securities and Exchange Commission (SEC) revealed its intention to convert its massive Grayscale Bitcoin Trust (GBTC) into an ETF.
Last week, the SEC declined to appeal a decision regarding the crucial time limit, raising hopes that approval for ETFs related to Bitcoin may be granted in the coming months.
A Bitcoin ETF would provide investors with an alternative way to be exposed to Bitcoin’s price movements without direct ownership.
Bitcoin is considered an extremely volatile asset, and its price experiences unexpected fluctuations.
Major financial institutions like BlackRock, Invesco, Fidelity, and Grayscale are showing strong interest in Bitcoin ETFs and are filing applications to sell assets that position themselves as safer investment options compared to direct cryptocurrency investments, given their stability and price volatility.
Coinbase stated that it believes that a U.S. Bitcoin exchange-traded fund (ETF) will be approved by the U.S. SEC.
Investors are closely watching developments in the cryptocurrency industry that could signal a turnaround.
During the past year, the sector has been embroiled in scandals and controversies, from the collapse of FTX’s profitability and the allegations against its CEO, Sam Bankman-Fried, to the legal troubles facing crypto firms in February, which were accused of violating securities laws.
In November 2021, Bitcoin reached an all-time high, with prices exceeding $65,000. However, a year later, the price plummeted to around $16,000 in November last year, causing FTX, the cryptocurrency exchange of Sam Bankman-Fried, to collapse and file for bankruptcy.
The SEC has cracked down on crypto firms, with companies like Coinbase and Ripple facing legal battles with the SEC, which accused them of violating securities laws.
Coinbase and Ripple, along with other crypto firms, have criticized the lack of clarity on crypto regulations in the United States and threatened to leave the country in response to the SEC’s actions. Bitcoin received a positive boost in sentiment about exchange-traded funds (ETFs) after surpassing the $34,000 level since May last year, reaching its highest point.
FAQs
What is the significance of Bitcoin surpassing the $34,000 level in May?
Bitcoin’s ability to surpass the $34,000 level in May is seen as a positive development, especially in the context of exchange-traded funds (ETFs). It suggests growing interest in cryptocurrencies and potentially a step toward more mainstream acceptance.
Why is the U.S. SEC’s intention to convert Grayscale Bitcoin Trust into an ETF important?
The U.S. Securities and Exchange Commission’s (SEC) intention to convert Grayscale Bitcoin Trust (GBTC) into an ETF is significant because it raises the possibility of having a Bitcoin ETF in the U.S. This could provide investors with a more regulated and secure way to invest in Bitcoin.
How do major financial institutions like BlackRock and Fidelity factor into the Bitcoin ETF landscape?
Major financial institutions like BlackRock, Fidelity, and others are actively involved in pushing for Bitcoin ETFs. They are seeking approval to create investment products that offer a safer and more stable way for traditional investors to enter the cryptocurrency market.
Why is the volatility of Bitcoin mentioned in the content?
Bitcoin is well called for their extreme price volatility. This is important to note because it means that its price can fluctuate significantly in a short period, making it a risky investment. Bitcoin ETFs are seen as a way to mitigate some of this risk for investors.
What are some of the challenges and controversies faced by the cryptocurrency industry recently?
The cryptocurrency industry has faced challenges and controversies, including legal issues, scandals, and allegations against prominent figures and exchanges. These events have raised concerns and highlighted the need for clearer regulations within the industry
