Bitcoin price has increased by more than 6%, reaching a price point above $45,000 on Tuesday. This marks the first time the cryptocurrency has seen such a high value since April 2022. Bitcoin reached a peak of $45,386 during the day, which is its highest value in the past 21 months. Currently, Bitcoin’s value is at $45,317.67, representing a 6.43% increase.
It’s interesting to note that other cryptocurrencies in the market also experienced an increase in value. For example, ether (ETH) rose by 3.8%, Solana (SOL) gained over 7%, and Cardano saw an increase of over 5%. It seems like the entire crypto market is seeing a boost in value.
Experts predict the surge in Bitcoin’s price linked to to the US SEC approving a spot Bitcoin Exchange-Traded Fund (ETF). According to reports, the SEC has until January 10 to either approve or reject the Ark/21Shares ETF. However, there are speculations that the SEC may inform issuers as early as Tuesday or Wednesday if ETF is clear to launch the following week.
Asset management firms are vying to become the first ones to receive regulatory approval for launching spot Bitcoin ETFs. They have recently updated their filings with the US SEC. Market observers speculate that the SEC may be close to deciding the ETFs. The update from these firms came on Thursday and Friday. According to reports, several asset management firms, including BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments, and a joint venture between Ark Investments and 21Shares, have updated their filings with regulators to outline the arrangements they have made with their market makers to ensure efficient and liquid trading. Sources suggest that the issuers who have met the filing revision deadlines by the end of the year may be able to launch their spot Bitcoin Exchange-Traded Fund (ETF) by January 10.
The recent surge in Bitcoin’s price and the entire crypto market can be attributed to the anticipation of the SEC approving a spot Bitcoin ETF. With several asset management firms preparing to launch their ETFs, the crypto market is seeing a boost in value. It will be interesting to see how the market reacts once the SEC makes its decision and the ETFs are launched.