Bitcoin Surges Above $35,000 on Anticipation of Spot Bitcoin ETFs
Bitcoin’s price soared to over $35,000 on Tuesday morning in Asia, fueled by growing expectations for the approval of spot bitcoin ETFs. The cryptocurrency, which is the largest by market capitalization, reached $34,883 at around 10:30 a.m. Hong Kong time today, marking a 14.8% increase in the past 24 hours. This surge pushed bitcoin above the $35,000 threshold for the first time since May 2022 and contributed to its weekly gain of 22.8%.
The heightened anticipation of Bitcoin ETFs this year is one of the main factors driving the rapid increase in bitcoin’s price. Investors are also allocating bitcoins to their portfolios as a risk diversification strategy amid the escalating Middle East conflict. Lucy Hu, a senior trader at Metalpha, explained that these factors have led to the recent surge in bitcoin’s price.
Jack Tan, co-founder and CEO of WOO Network, believes that bitcoin may continue to rise in anticipation of spot bitcoin ETFs and as a hedge against geopolitical turmoil that necessitates more government spending and money printing. He stated that this surge is different from previous instances driven by fake news.
Ethereum also experienced positive price movements, rising 7.8% over the past 24 hours and gaining 13.5% in the week.
BlackRock’s Bitcoin ETF Makes an Appearance
BlackRock’s highly anticipated spot bitcoin ETF, known as the iShares Bitcoin Trust, made an appearance on a list maintained by the Depository Trust and Clearing Corporation (DTCC). Eric Balchunas, senior ETF analyst at Bloomberg, commented on Twitter that this is the first spot ETF listed on DTCC, indicating that BlackRock is leading the charge in the logistics of ETF launch. This development suggests that approval for the ETF is likely imminent.
Hot Take: Bitcoin’s Surge Driven by ETF Anticipation and Risk Diversification
The surge in bitcoin’s price above $35,000 can be attributed to two main factors: anticipation of spot bitcoin ETFs and institutional investors seeking risk diversification. The expectation of Bitcoin ETF approval has generated excitement among traders and investors, fueling the rapid increase in price. Additionally, as geopolitical tensions rise, institutional investors are turning to bitcoin as a hedge against market volatility and uncertainty. This surge marks a significant milestone for bitcoin and highlights its growing role as a mainstream investment option.
By
By
By
By
By
By