Last week, the price of Bitcoin rose from $29,000 to $34,000. If you’ve been following the news, you know that the price has increased by a certain three-letter abbreviation. Let’s summarize it for you.
Bitcoin price soared
After a steady rise last weekend, Bitcoin’s momentum increased significantly on Monday, jumping from $31,000 to $35,000 in just eight hours. The rally was likely fueled by news of BlackRock’s preparations to launch a spot Bitcoin ETF (the three-letter acronym from the launch).
Permission for Bitcoin ETF
An ETF is a fund that you can buy shares of. The value of this piece (share) increases or decreases depending on what is in this fund. It could be a collection of shares of technology companies or companies in the sustainability sector, and if US financial regulators allow it, ETFs could also be filled with Bitcoins.
This ETF is managed by a fund manager who takes care of the logistics. BlackRock is one of the largest fund managers in the world and wants to launch a Bitcoin ETF. Financial regulator SEC must grant approval for this.
Speculation about possible approval increased when a ticker called IBTC was discovered and widely shared on social media. However, it was later discovered that this ticker had been listed since August without providing any new information. But the (good?) damage has already been done: the price has risen by more than 10%.
January 10, 2024
While last week’s rise was indeed based on hot air, Bitcoin ETFs appear increasingly likely by January 10, 2024. BlackRock isn’t the only one looking to launch an ETF. Another player is Grayscale. This financial company already had a kind of Bitcoin fund and wanted to convert it into an ETF.
The financial regulator thought this was a bad idea and rejected the request. However, the judge ruled that this should not be disapproved. The SEC could have appealed, but strangely chose not to.
Analysts at US bank JP Morgan believe that the SEC’s decision not to appeal the ruling in the Grayscale case is a sign of growing acceptance and understanding of the cryptocurrency regulator.
JP Morgan’s Nikolaos Panigirtzoglou expects approval within a few months, likely before January 10, the last day for Ark 21Shares applications. This is yet another company planning to launch an ETF.
Panigirtzoglou says the regulator would rather approve multiple applications at the same time than give a single applicant a “first-mover advantage.”
Source: BtcDirect
Source link
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
