Bitcoin Surges to $47,000 After U.S. Approves First Spot Bitcoin ETFs
Bitcoin experienced a surge to $47,000 on Thursday morning following the approval of the first spot Bitcoin exchange-traded funds (ETFs) in the United States. At present, the largest cryptocurrency by market cap is trading at just over $47,100, representing a 3.9% increase for the day.
Landmark Approval Enables Institutional Investors to Gain Exposure to Bitcoin
The approval of the first spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) marks a significant milestone for the crypto industry. This decision allows institutional investors to access Bitcoin without directly owning the cryptocurrency themselves.
Price Fluctuations and Fake Tweet Drama
Prior to the approval announcement, Bitcoin’s price experienced fluctuations. The cryptocurrency took a dive after a fake tweet from an allegedly compromised SEC Twitter account falsely claimed that all Bitcoin ETFs had been approved. However, once the SEC officially announced multiple spot Bitcoin ETF approvals on Wednesday, price action initially became volatile before gaining momentum on Thursday morning.
SEC Chair Approves ETFs Despite Previous Crypto Investment Warnings
Despite previously expressing concerns about crypto investing, SEC chair Gary Gensler voted in favor of approving the ETFs. Gensler acknowledged that circumstances had changed due to a court order that compelled the SEC to review Grayscale’s application for a spot Bitcoin ETF.
Rebuke from SEC Commissioner Hester Peirce
SEC Commissioner Hester Peirce delivered a pointed rebuke, stating that the regulator had wasted opportunities over a decade to fulfill its responsibilities and only proceeded with the approval process reluctantly after being challenged in court.
BlackRock’s iShares Bitcoin Trust Sees Pre-Market Trading Surge
Pre-market trading for BlackRock’s iShares Bitcoin Trust (IBIT) is up by 24.3%, with shares trading at $27.26. Bloomberg Intelligence analyst Eric Balchunas reported that over $2 million worth of shares have been traded.
Hot Take: Bitcoin Skyrockets as U.S. Approves First Spot Bitcoin ETFs
The approval of the first spot Bitcoin ETFs by the SEC has propelled Bitcoin to new heights, reaching a price of $47,000. This decision provides institutional investors with an avenue to access Bitcoin without directly owning the cryptocurrency. Despite initial price fluctuations and a fake tweet causing confusion, the official announcement of multiple spot Bitcoin ETF approvals has led to increased market activity. The SEC chair’s approval, despite previous warnings about crypto investing, highlights a changing stance within the regulator. However, SEC Commissioner Hester Peirce criticizes the organization for squandering opportunities and only acting after being compelled by a court order. Pre-market trading for BlackRock’s iShares Bitcoin Trust has also surged, indicating positive market sentiment.
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