Bitcoin has reached a milestone, surpassing $45,000 in value for the first time since April 2022. This significant surge, exceeding 4 percent on Tuesday morning, is attributed to optimistic expectations surrounding a favorable decision by the U.S. Securities and Exchange Commission (SEC). Investors are eagerly awaiting the SEC’s ruling, expected early this year, regarding the possibility of introducing exchange-traded funds (ETFs) linked to Bitcoin. Such approval could pave the way for substantial additional investments in the cryptocurrency market.
SEC’s Consideration of Bitcoin ETFs: The SEC is currently reviewing the proposal to allow the creation of publicly traded Bitcoin funds. If approved, these funds would enable investors to engage in Bitcoin trading through traditional stock exchanges rather than relying on cryptocurrency trading platforms. This innovative approach allows investors to allocate funds to Bitcoin without directly purchasing the digital asset. Analysts speculate that the potential approval could attract billions of dollars in additional investments to the Bitcoin market.
Market Anticipation and Preparation: Hayden Hughes, co-founder of the trading platform Alpha Impact, suggests that investors in the United States and Europe are already positioning themselves in anticipation of a positive outcome from the SEC. This proactive approach reflects the belief that the approval of Bitcoin ETFs could mark a significant shift in how institutional and retail investors access and engage with the cryptocurrency.
Bitcoin’s Recent Performance: The recent surge in Bitcoin’s value follows a strong performance in the previous year, where the cryptocurrency experienced a substantial increase in its worth. At the beginning of 2023, Bitcoin was valued at approximately $16,600, and just a month ago, it crossed the $40,000 mark. While the current value is a positive development, it is important to note that Bitcoin has not yet reached its record high. In November 2021, the cryptocurrency briefly reached a peak of $69,000.
Potential Impacts on the Market: The potential approval of Bitcoin ETFs by the SEC holds the promise of injecting significant liquidity into the cryptocurrency market. This influx of institutional and retail investments could contribute to further price appreciation and enhance the overall credibility and acceptance of Bitcoin within the traditional financial landscape.
Subscribe to our free newsletter!
- Financial news
- Market Update
Since the Russian invasion of Ukraine, Europe has decreased its gas demand by 20 percent, reaching the lowest level in a decade. Consumption has been curbed, and gas from Russia has been replaced by LNG (liquefied natural gas). The decline has been particularly noticeable in large countries such as Germany, Italy, and the United Kingdom, […]
With the aim of ensuring a smooth post-Chinese New Year return, the central bank has moved its pieces in advance by implementing the most significant cut in interest rates, particularly on the prime rate crucial for the chain of mortgage loans. Currently, the calming effect is observed mainly in the stock markets. The Shanghai Composite […]
There appears to be no halt in the upward trajectory of cocoa bean prices. In 2023, cocoa emerged as the top-performing commodity, skyrocketing by 65%. Just two months into the new year, there’s already another surge of over 40%. This places cocoa, the vital ingredient for chocolate, at the forefront of Bloomberg’s data aggregator overview […]
Blockchain technology is still in an exploratory phase in the European financial sector, but widespread adoption in wholesale payments is expected in the coming years, prompting central banks to take action. This was stated by European Central Bank member Piero Cipollone while opening the 30th Assiom Forex Congress in Genoa, emphasizing that “central banks cannot […]
Heineken and Pernod Ricard are expected to face their quarterly earnings test this week. An appointment that, in case of disappointing results, would definitively certify that inflation is now making its presence felt in consumers’ wallets. Both producers, like other competitors in the sector, have been exposed for some months to a declining market, albeit […]
Stay informed about the economy and financial markets. Reading financial insights and market news can help individuals make more informed investment decisions. It can also provide information on economic trends and events that may affect the performance of different investments. Additionally, it can help individuals stay up-to-date on changes in government policies and regulations that could impact the financial markets. Overall, staying informed about financial and market news can help individuals make more informed decisions about their investments and manage their financial portfolios more effectively.