Bitcoin Regains Confidence at $47,000 on Speculative ETF Approval

For the first time since April 2022, Bitcoin has surpassed the $47,000 mark. This surge comes as U.S. regulators appear ready to greenlight Exchange-Traded Funds (ETFs) that directly invest in the digital asset.

BlackRock Inc., Ark, and several other potential ETF issuers submitted revised forms on Monday.

Analysts view this move as a final effort to introduce these investment products, more than ten years after the initial application was submitted – according to Bloomberg.

Bitcoin, the pioneer digital currency, experienced a significant intraday increase of 6.2%, reaching $47,007. This is the largest single-day gain since November 15. Bitcoin’s value soared nearly 160% last year, with expectations high that the U.S. Securities and Exchange Commission (SEC) would approve the ETF applications. The cryptocurrency is now approaching levels unseen since before the crypto market crash in the latter half of 2022. Bitcoin reached a record high of nearly $69,000 in November 2021.

Greg Moritz, co-founder and COO of crypto hedge fund Alt Tab Capital, attributed Bitcoin’s bullish trend to the high probability of spot ETF approval this week.

Other firms, including Fidelity, Invesco, Galaxy Digital, and WisdomTree, also submitted amended S-1 applications to the SEC. The regulator has until January 10 to act on at least one of these applications.

According to Bloomberg, Crypto insiders speculate that the SEC may use this deadline to announce multiple decisions simultaneously.

On Monday, SEC Chair Gary Gensler issued a warning on the social media platform X, cautioning about the risks often associated with crypto investments.

Teong Hng, CEO of crypto investment firm Satori Research, noted that billions of dollars in crypto long positions were liquidated last week following an analyst report suggesting the SEC would reject the applications this week.

However, bullish reports today, such as Standard Chartered Bank’s estimate of a $50 to $100 billion inflow into Bitcoin ETF this year, are fueling the rally.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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