After moving sideways between $40,000 and $44,000 for the past four weeks, the Bitcoin exchange rate on Tuesday morning (UK time) broke through the $45,000 mark, a level the Bitcoin exchange rate hasn't been at since 21 months back. The price rise comes amid market expectations that the US Securities and Exchange Commission (SEC) will approve the sale of Bitcoin spot-based ETFs, a financial instrument that a dozen leading US asset managers have applied to adopt.
At 7 p.m. on Tuesday, the Bitcoin exchange rate stood at 45.220, after a price increase over the past 24 hours of 7%. Bitcoin also dragged most other cryptocurrencies with a total market capitalization of $1.82 trillion (in English: trillions) USD, also an increase of 6%. However, there is still a good way to go until the peak in November 2021, when the total value passed US$3 trillion. From 2021 to 2023, 2 of these trillions disappeared, before Bitcoin, among other things, embarked on its latest upward journey.
Over the space Christmas, most of these asset managers updated their applications, based on questions from the SEC. Most expect the SEC to give the green light, after various asset managers have been trying to get approval for such Bitcoin-based ETFs for close to 10 years. It is also expected that formal approval will be available from January 10, when the SEC has a deadline to give one of the applicants, 21Shares, feedback on its 2023 application. Nevertheless, the market is speculating that as early as this week the SEC is going to go out with information about the outcome of the process.
However, despite the price rise on Tuesday, there is still uncertainty as to how the eventual approval of Bitcoin spot ETFs will turn out. Will it contribute positively to the price development of Bitcoin, in the short term, or will it be a sell-the-news event? Simply because the market has already discounted an approval. Ever since Blackrock, the world's largest asset manager, announced this summer that it would apply to the U.S. Securities and Exchange Commission (SEC), the attention and hype surrounding the ETF process has been increasing, and has probably been a major contributor to Bitcoin's rise through the second half of 2023.
The approval and launch of ETFs based on Bitcoin Spot quotes is also seen as conclusive proof that institutional investors have now seriously turned their eyes to investments in Bitcoin and other cryptocurrencies. However, with the uncertain regulatory conditions prevailing in the United States, these have gladly seen themselves prevented from investing directly in Bitcoin. By investing in ETFs, which are a recognized and regulated asset class, these investors will be able to gain exposure to Bitcoin, but without investing in the cryptocurrency itself. In the longer term, both asset managers and analysts expect ETFs to trigger multi-trillion dollar investments.
Both asset managers and their investors have also noted that in 2023, Bitcoin was the asset class that provided the absolute best returns. The exchange rate fluctuations, or volatility, were also substantially lower than in previous years.
Macroeconomics expert and author Lyn Alden also believes that traditional financial institutions are beginning to believe that Bitcoin (BTC) is not in a classic bubble. In a recent interview with Peter McCormack, Lyn Alden pointed out that Bitcoin, the leading cryptocurrency, has shown a general upward trend that is likely to continue, based on its price over the past 15 years, and stated the following:
“You see this repeating cycle, and it's happened three times. Three times, after a decline of 75% or more, sometimes over 90%, it has reached a higher level. There are very few stocks that have done this and I couldn't find any stock that has done this more than three times. If Bitcoin reaches a new high, it will be the fourth time it has done so.”, Aiden said among other things.
You can watch the full conversation between Peter McCormack and Lyn Alden, which was published 1. New Year's Day, below:
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After moving sideways between $40,000 and $44,000 for the past four weeks, the Bitcoin exchange rate on Tuesday morning (UK time) broke through the $45,000 mark, a level the Bitcoin exchange rate hasn't been at since 21 months back. The price rise comes amid market expectations that the US Securities and Exchange Commission (SEC) will approve the sale of Bitcoin spot-based ETFs, a financial instrument that a dozen leading US asset managers have applied to adopt.
At 7 p.m. on Tuesday, the Bitcoin exchange rate stood at 45.220, after a price increase over the past 24 hours of 7%. Bitcoin also dragged most other cryptocurrencies with a total market capitalization of $1.82 trillion (in English: trillions) USD, also an increase of 6%. However, there is still a good way to go until the peak in November 2021, when the total value passed US$3 trillion. From 2021 to 2023, 2 of these trillions disappeared, before Bitcoin, among other things, embarked on its latest upward journey.
Over the space Christmas, most of these asset managers updated their applications, based on questions from the SEC. Most expect the SEC to give the green light, after various asset managers have been trying to get approval for such Bitcoin-based ETFs for close to 10 years. It is also expected that formal approval will be available from January 10, when the SEC has a deadline to give one of the applicants, 21Shares, feedback on its 2023 application. Nevertheless, the market is speculating that as early as this week the SEC is going to go out with information about the outcome of the process.
However, despite the price rise on Tuesday, there is still uncertainty as to how the eventual approval of Bitcoin spot ETFs will turn out. Will it contribute positively to the price development of Bitcoin, in the short term, or will it be a sell-the-news event? Simply because the market has already discounted an approval. Ever since Blackrock, the world's largest asset manager, announced this summer that it would apply to the U.S. Securities and Exchange Commission (SEC), the attention and hype surrounding the ETF process has been increasing, and has probably been a major contributor to Bitcoin's rise through the second half of 2023.
The approval and launch of ETFs based on Bitcoin Spot quotes is also seen as conclusive proof that institutional investors have now seriously turned their eyes to investments in Bitcoin and other cryptocurrencies. However, with the uncertain regulatory conditions prevailing in the United States, these have gladly seen themselves prevented from investing directly in Bitcoin. By investing in ETFs, which are a recognized and regulated asset class, these investors will be able to gain exposure to Bitcoin, but without investing in the cryptocurrency itself. In the longer term, both asset managers and analysts expect ETFs to trigger multi-trillion dollar investments.
Both asset managers and their investors have also noted that in 2023, Bitcoin was the asset class that provided the absolute best returns. The exchange rate fluctuations, or volatility, were also substantially lower than in previous years.
Macroeconomics expert and author Lyn Alden also believes that traditional financial institutions are beginning to believe that Bitcoin (BTC) is not in a classic bubble. In a recent interview with Peter McCormack, Lyn Alden pointed out that Bitcoin, the leading cryptocurrency, has shown a general upward trend that is likely to continue, based on its price over the past 15 years, and stated the following:
“You see this repeating cycle, and it's happened three times. Three times, after a decline of 75% or more, sometimes over 90%, it has reached a higher level. There are very few stocks that have done this and I couldn't find any stock that has done this more than three times. If Bitcoin reaches a new high, it will be the fourth time it has done so.”, Aiden said among other things.
You can watch the full conversation between Peter McCormack and Lyn Alden, which was published 1. New Year's Day, below:
<iframe width="100%" height="400" src="https://www.youtube.com/embed/G4m1P0_yMJ8?si=CGIodk-B6qXLXqh9" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
