Photo: Bitcoin Surges to $35,000 for the First Time Since Last Year. Source: Collage The Gaze\by Leonid Lukashenko
The largest digital asset, Bitcoin, has surged by 11.5% to reach $35,000. Other cryptocurrencies, including Ether, BNB, XRP, and Dogecoin, have also seen gains due to anticipation surrounding the creation of a Bitcoin exchange-traded fund (ETF).
The possible approval of the first Bitcoin spot ETFs in the U.S. in the coming weeks has ignited interest in the token. Asset managers such as BlackRock Inc. and Fidelity Investments are among those seeking to offer such products. Supporters of digital assets argue that ETFs will expand the adoption of cryptocurrencies.
The U.S. Federal Appeals Court also officially upheld the victory of Grayscale Investments LLC in its application to create a Bitcoin spot ETF on Monday, despite opposition from the U.S. Securities and Exchange Commission (SEC).
The SEC had previously resisted approving ETFs directly investing in Bitcoin, citing concerns about risks such as fraud and manipulation in the underlying market. The court decision and a flurry of applications from investment heavyweights to create spot funds have heightened speculation that the agency will yield.
Bitcoin also saw a 10% increase in value in the early part of the last week, driven by the excitement around ETFs. This followed reports suggesting that BlackRock had allegedly received approval to establish a fund.
Ether, the second-largest token, rose by 6.4%, surpassing $1,800 on Tuesday. Smaller coins like BNB, XRP, and Dogecoin also saw gains.
Data from Coinglass shows that cryptocurrency trading positions amounting to approximately $387 million were liquidated in the last 24 hours, mainly by speculators betting on lower prices.
Bitcoin remains below its pandemic-era peak in 2021, when it nearly reached $69,000. This is attributed to rising interest rates, which have negatively impacted the demand for risk assets. The token's correlation with assets like stocks, bonds, and gold has recently decreased, raising questions about whether retail investors have moved away.
The U.S. Securities and Exchange Commission (SEC) has already allowed the creation of ETFs that own Bitcoin and Ethereum futures contracts. However, the SEC has generally tightened its oversight of cryptocurrency after last year's market crash.
As reported by The Gaze, this year, the Central, Northern, and Western Europe (CNWE) region has become the world's second-largest cryptocurrency economy, trailing only North America. Approximately $1 trillion has flowed into the cryptocurrency space during this period.
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