Bitcoin at highest level since 2022 amid ETF approval hopes

by Jonathan Adams

The world’s biggest crypto currency gained over 10% Monday, its biggest rise over a 24-hour period since September 2022

Bitcoin (BTC-USD) soared above $35,000 in its biggest single-day surge in 13 months, amid hopes that regulatory approval of the first spot bitcoin EFT is nearing.

The world’s biggest crypto currency gained over 10% Monday, its biggest rise over a 24-hour period since September 2022. The token reached its highest level in a year and a half.

The stocks of digital asset firms also rose. Coinbase (COIN), the biggest US crypto exchange, opened 13% higher Tuesday while MicroStrategy (MSTR) gained 12%. Bitcoin mining companies Riot Platforms (RIOT) and Marathon Digital (MARA) soared over 13% and 17%, respectively.

The rally seemed to be driven partly by speculation that the US SEC was close to granting approval for a spot bitcoin exchange-traded fund, which would allow investors to get exposure to the crypto currency without having to own it.

BlackRock is among the money managers that have recently applied to launch such a product.

Bitcoin backers pointed to the listing of BlackRock’s iShares Bitcoin Trust on the website of clearing house Depository Trust and Clearing Corporation (DTCC), while also celebrating a proposal that BlackRock had started seeding the fund.

Speculation about BlackRock also drove prices up last week when a rumour circulated that the Securities and Exchange Commission had granted its approval for the spot bitcoin exchange-traded fund. Prices retreated when BlackRock denied it. Investors expect the SEC will rule on the applications by January 10.

There is another factor behind this week’s price variations, as per crypto market data aggregator Coinglass. Over the past 24 hours, $231 million worth of levered positions on bitcoin have been liquidated by investors.

The dramatic movements over the last few weeks have some in the crypto community cheering a return of the enthusiasm that characterised the industry during the early days of the pandemic.

We are so back, Alex Svanevik, Chief Executive Officer of blockchain analytics company Nansen, stated in a post on X, formerly known as Twitter.

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