The price of bitcoin rose slightly on Thursday after US regulators approved the first ETFs based on the cryptocurrency, and earlier in the week its value hit its highest level since March 2022, Reuters reported.
The US Securities and Exchange Commission (SEC) announced Wednesday night that it has approved the listing and trading of 11 spot ETFs (open-ended investment funds) for bitcoin, a long-awaited move by the crypto market.
Three of the ETFs were already trading in markets Thursday morning, and the others are expected to be available to investors later in the day.
Bitcoin rose 0.6% to $46,250 after the announcement. The world’s largest cryptocurrency has risen by almost 9% since the beginning of the year. Bitcoin hit a high of $47,915 on Tuesday, the highest level since March 2022.
Bitcoin is making a comeback in a big way
Last year, the cryptocurrency more than doubled in value after a tumultuous 2022 for the crypto industry, which saw the spectacular collapse of several prominent companies, including FTX, the second largest cryptocurrency trading platform at the time respectively.
Investors’ enthusiasm for cryptocurrency has not even been dampened by the massive scandal involving Binance, the world’s largest crypto platform, that occurred last November. Most analysts attribute the situation to investors’ expectations that the SEC will approve the first bitcoin-based ETFs circulating since early 2023.
“Essentially, a bitcoin spot ETF provides standardized access to a digital asset as an investment without affecting what bitcoin stands for,” Marion Labour, senior strategist at Deutsche Bank, told Reuters.
“Only time will tell if wider adoption will lead to more transformative upheavals for the crypto ecosystem and the financial system. For now, the approval of the ETF opens a new chapter for bitcoin prices, although volatile conditions are likely to remain,” Labour added.
Spot bitcoin ETFs were already available Thursday morning in other markets, including Canada and Europe, but so far have not generated significant interest from institutional investors.
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Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.