Bitcoin has reached new heights, with its value exceeding $35,000 for the first time since May 2022. This surge can be attributed to growing expectations surrounding the approval of US spot Bitcoin exchange-traded funds (ETFs). The cryptocurrency's value rose by an impressive 11.5%, touching the $35,000 mark before slightly retracing.
This remarkable performance has driven Bitcoin's year-to-date rebound to 105% since the digital asset market's downturn in 2022 (the infamous Crypto Winter). A pivotal factor contributing to this rally is the potential introduction of the first US spot Bitcoin ETFs, which have created high expectations in the market. Companies such as BlackRock and Fidelity Investments are actively competing to offer these products. Many in the digital asset space believe that these ETFs would significantly expand the adoption of cryptocurrencies. Thus, the hype is growing.
Notably, a recent US federal appeals court ruling in favor of Grayscale Investments LLC in its quest to establish a spot Bitcoin ETF has added to the ETF fervor, even against the objections of the US Securities and Exchange Commission (SEC). During recent months, the SEC has been cautious about permitting ETFs directly tied to Bitcoin due to market manipulation and fraud concerns.
Experts speculate that the recent developments, including the listing of the iShares Bitcoin Trust with the ticker IBTC on the Depository Trust and Clearing Corp. (DTCC), signify that the launch of a Bitcoin ETF is approaching. This listing does not equate to final approval but indicates significant progress in this direction.
While Bitcoin's resurgence is promising, it still remains well below its 2021 peak of nearly $69,000. Factors like increasing interest rates impacting demand for riskier assets have affected its performance. As Bitcoin shows signs of recovery, the crypto market eagerly awaits further developments in the ETF realm.
At Lab51 we firmly believe the approval of the first spot Bitcoin ETF in the US is getting closer, and many analysts' reports confirm our belief. We will monitor market movement and keep you updated on Bitcoin performance and the ETF race.