For the first time since 2022: Bitcoin’s rate has risen by 20% over the past week to reach 35 thousand. dollars
The largest cryptocurrency, bitcoin, has risen in price by more than 11% over the past day and briefly reached $35,000 for the first time since 2022. Over the past week, its rate has risen by about 20%.
Bloomberg cites expectations that the US will soon approve the launch of spot cryptocurrency ETFs, exchange-traded funds whose price will be tied to bitcoin, as the main driver of the current growth. They can facilitate the entry of large investors into the crypto market who are not ready to buy digital assets directly, fearing inadequate legal regulation and storage problems.
Applications to open ETFs have been submitted by funds with multibillion-dollar assets, such as BlackRock and Fidelity Investments. Proponents of digital assets are confident that ETFs will expand the spread of cryptocurrencies.
The second reason for the rally is the decision of the US federal court in favor of Grayscale Investments in a dispute with the US regulator SEC over the conversion of the Grayscale bitcoin trust fund into a spot ETF.
The U.S. Securities and Exchange Commission has not yet authorized ETFs that invest directly in bitcoin, citing the risks associated with it, such as fraud and market manipulation. The court’s decision and a flurry of applications from investment heavyweights to open spot ETFs have led to speculation that the agency will soften its stance.
Despite the rally, the price of bitcoin remains well below its peak, when it reached almost $69,000 in 2021 amid the coronavirus pandemic.
Currently, ETFs on bitcoin futures and cryptocurrency shares are traded on exchanges.
- Cryptocurrencies are highly volatile and can go up and down in price. For example, in August, they fell by 10% or more overnight after the Wall Street Journal reported that Elon Musk’s SpaceX had reduced its bitcoin reserves by $373 million, which the company acquired in 2021-2022.
