Bitcoin's value is soaring, surpassing $35,000 for the first time since May 2022, marking a 20% increase in just five days.
This renowned digital currency has seen its value more than double this year. The surge in interest is largely attributed to investors' anticipation of purchasing bitcoin funds on established stock exchanges, sidestepping the less-regulated and occasionally dubious crypto platforms like FTX and Binance.
The buzz heightened when BlackRock's bitcoin-focused exchange-traded fund (ETF) was spotted on a list managed by the Depository Trust and Clearing Corp., a clearing house operated by Nasdaq, as reported by Reuters.
Earlier in June, BlackRock, the world's leading ETF provider overseeing trillions in assets, had filed for a bitcoin spot ETF, awaiting approval. An endorsement for a BlackRock bitcoin ETF would undoubtedly enhance the cryptocurrency's credibility.
Samer Hasn, a market analyst at XS.com, commented, “The DTCC listing doesn't confirm the fund's launch. Yet, it might indicate BlackRock's imminent plans to introduce the ETF.”
Several other firms, including Grayscale Investments, are in line seeking approval for their bitcoin ETFs. Despite the US Securities and Exchange Commission's initial disapproval of Grayscale's ETF, an appellate court in DC reversed the decision in August, criticizing the regulator's inadequate justification for the rejection.
This reversal positively impacted the crypto market during the summer months.
However, the SEC's final approval is still pending, and investors might be acting prematurely.
Hasn expressed skepticism, stating, “The swift upticks in bitcoin's value might be overblown. The market remains overshadowed by regulatory and legal challenges, and I'm not optimistic about these issues being resolved soon.”
Yet, another factor might be driving bitcoin's surge: uncertainty. In volatile times, some investors are gravitating towards bitcoin, paradoxically viewing it as a digital refuge. Often referred to as "digital gold," bitcoin offers investors an alternative to conventional stocks and bonds.
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