Bitcoin, the pioneering cryptocurrency, has achieved a significant milestone by surpassing the $30,000 mark on Friday. This is the first time since August that Bitcoin has reached such heights. The surge in Bitcoin’s value is largely driven by the anticipation of potential approval from the U.S. Securities and Exchange Commission (SEC) for exchange-traded funds (ETFs) that directly invest in Bitcoin.
As per FactSet data, Bitcoin traded as high as $30,233 per coin on Friday. This breakthrough highlights the growing confidence in Bitcoin, especially considering it hadn’t breached the $30,000 level since August 9.
Earlier this week, the price of Bitcoin briefly touched the $30,000 mark following reports of approval granted to BlackRock Inc. — the world’s largest money manager in terms of assets under management — to launch a spot Bitcoin ETF. Furthermore, Coinbase Global Chief Legal Officer Paul Grewal expressed his optimism during a CNBC interview, stating that he firmly believes spot Bitcoin ETFs will soon obtain the necessary approvals.
Investors have been eagerly awaiting the SEC’s decision on “spot” Bitcoin ETFs, which facilitate direct investment and possession of Bitcoins. This differs from the existing Bitcoin ETFs that rely on futures contracts tied to the cryptocurrency.
Previously hesitant about approving spot Bitcoin ETFs, the SEC is now expected to grant approvals after losing a legal battle with Grayscale, the operator of the Grayscale Bitcoin Investment Trust (GBTC). Grayscale has long sought to convert its product, one of the first to offer Bitcoin exposure in U.S. markets, into an ETF. Last week, the SEC chose not to appeal a judge’s ruling, who declared that the agency had no legitimate grounds to reject Grayscale’s request.
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Market participants within the cryptocurrency space anticipate that the SEC will approve a Bitcoin ETF by January 10, which serves as the final deadline for the agency to respond to various spot Bitcoin ETF applications from ARK Invest and 21Shares.