On Wednesday, after the approval of Bitcoin ETFs in the US, the main digital currency briefly rose by 6.7% to $49,021 - for the first time since December 2021.
The price of Ethereum increased by 5% - to the May maximum of 2022. The token tied to Polygon gained 7%, Chainlink moved up by 5%, and Uniswap by 6%.
At the moment, Bitcoin is trading at a price of $46.3 thousand.
ETF (Exchange Traded Fund) is a fund whose manager (ETF provider) collects company shares into one portfolio based on certain criteria and sells them on the exchange. It is expected that ETFs will facilitate the process of investing in cryptocurrency (without directly buying and holding bitcoins).
The US Securities and Exchange Commission (SEC) has been against Bitcoin ETFs for over 10 years, while the crypto sector as a whole has faced sharp criticism from the agency's head Gary Gensler. He has repeatedly stated that the industry is rife with fraud and misconduct. SEC cracked down on digital assets after the crash of 2022 and the bankruptcies of crypto exchanges such as Sam Bankman-Fried's FTX.
On Wednesday, the Commission approved Bitcoin ETFs registered in the US and accepted 11 applications, including from BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck.
"ETFs are actually a turning point for financial advisors, who now must have their own opinion on this asset class," said Su Zhu, executive director of data provider CF Benchmarks, which provides indexes for several approved ETFs. "They may still not recommend it to their clients, but the fact that it is now available through a regulated product means they should at least have their own point of view. This could open the door to a more stable stream of interest in the asset class."
According to Reuters, the trading volume of Bitcoin ETFs reached $4.6 billion on the first day after the SEC's decision. BlackRock, Grayscale, and ARK 21Shares funds were leading.
Comments (0)
There are no comments for now