Amid improved sentiment, BTC/USD rose above the $47,000 resistance level for the first time since April 2022, as US regulators are seen as ready to approve exchange-traded funds that invest directly in digital assets for the first time. It was submitted by BlackRock Inc. Ark and several other potential issuers of exchange-traded funds revised forms earlier Monday in what analysts saw as a final push to offer investment products more than a decade after filing the first application.
According to trading, the original digital currency rose by up to 6.2% to reach $47,200, which is the largest daily increase since November 15. Bitcoin, which rose nearly 160% last year in anticipation of the US Securities and Exchange Commission approving applications, is rising to unparalleled levels. It has been seen since before the cryptocurrency sector collapsed in the second half of 2022. The token reached an all-time high of nearly $69,000 in November 2021.
Commenting on the performance and strengths, Greg Moritz, co-founder and chief operating officer of cryptocurrency hedge fund Alt Tab Capital, said: “Bitcoin’s upward movement is almost certainly a response to the very high probability that we will see immediate approval for ETFs this week.”
Fidelity, Invesco, Galaxy Digital and WisdomTree were among other companies that filed amended S-1 filings with the Securities and Exchange Commission. The regulator has until January 10 to take action on at least one of its applications, and cryptocurrency insiders have speculated that the regulator will use this date to announce a large number of decisions at once. SEC Chairman Gary Gensler issued a warning Monday on social media platform X about the risks that often come when investing in cryptocurrencies.
For his part, Tiong Heng, CEO of cryptocurrency investment firm Satori Research, said: “Billions of dollars of long cryptocurrency positions were liquidated last week when an analyst report indicated that the SEC would reject this week.” “Today’s bullish reports, from the likes of Standard Chartered, are estimating between $50 billion and $100 billion in inflows into Bitcoin ETFs this year, adding to the rally.”
Other smaller cryptocurrencies rose the most, with Ethereum rising about 3.8%, and Cardano, Solana’s SOL, and Polkadot rising 7% to 9%. Bitcoin represents just over half of the cryptocurrency market value of $1.7 trillion.
As a result, shares of so-called cryptocurrency companies were mostly higher. Shares of Coinbase Global, the largest cryptocurrency exchange in the United States, rose about 2.3%, while shares of Bitcoin miners Marathon Digital and Riot Platforms rose more than 7%. MicroStrategy, a software maker that has served as a proxy for many equity investors who want exposure to Bitcoin, fell about 1.2%.
How influential are ETFs?
Bitcoin proponents say ETFs backed by the cryptocurrency’s largest token will mark a watershed moment for the digital asset. There are billions of dollars at stake, representing potential inflows from both individual and institutional investors. Market bets that regulatory approval was on the horizon fueled a roughly 160% jump in bitcoin last year. But that wasn’t enough to re-reach the record highs set in November 2021, when Bitcoin reached nearly $69,000.