Bitcoin price rises above $47,000 after US SEC approves ETFs

Bitcoin prices scaled above $47,000 for a brief period, witnessing a muted response to US Securities and Exchange Commission’s approval of exchange-traded funds (ETF) that invest directly in the token. 

The world’s largest cryptocurrency Bitcoin traded 1.8% higher at $46,728 following the decision. Other cryptocurrencies also gained, with Ether, the second largest token, gaining 17% to $2,590.

Bitcoin prices had already jumped 166% in the past year, partly in anticipation of the ETFs, Bloomberg News reported.

Market participants expect the Bitcoin ETF approval to widen crypto’s investor base.

Also Read: ‘Landmark decision’: US regulator approves Bitcoin ETFs, boosting cryptocurrency market

The US SEC approved 11 applications, including from BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck, among others. Some products are expected to begin trading as early as Thursday.

Analysts believe Bitcoin ETF approval was already ‘priced in’ by the markets and Bitcoin prices may see a pullback if traders opt for profit taking after a sharp rally.

However, certain analysts believe this will further amplify positive market sentiment, with expectations of a substantial boost to Bitcoin's value.

“This decision is set to trigger heightened trading activity, leading to a significant surge in trading volume. The positive momentum is anticipated to extend beyond Bitcoin to other tokens, signaling a broader resurgence in the overall crypto market. On an industry level, the implications are profound, promising long-term benefits that drive mass adoption. The approval opens doors for retail investors, simplifying their access to Bitcoin transactions through traditional brokerage accounts,” said Sumit Gupta, Co-founder, CoinDCX.

From an institutional perspective, Gupta said, this development marks the inception of the first institutional bull market in crypto. 

“The spot Bitcoin ETF is poised to streamline exposure for traditional players, paving the way for the influx of trillions in institutional capital. Leading institutions, including hedge funds, sovereign wealth funds, and registered investment advisors, are expected to play a pivotal role in propelling the unprecedented growth of ETFs,” Gupta added.

(With inputs from Agencies)

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