Bitcoin’s Unstoppable Ascent: The Story Behind Its Latest Surge
Bitcoin’s value is soaring, having recently breached the $35,000 mark for the first time since May 2022, reflecting a significant 20% increase within a mere span of five days.
This unparalleled ascent in the world of cryptocurrency has witnessed its value more than doubling this year alone. The heightened interest from investors stems from the anticipation of availing bitcoin-oriented funds on time-tested stock exchanges, rather than navigating the sometimes murky waters of lesser-known crypto platforms such as FTX and Binance.
Fueling this buzz is the recent news surrounding BlackRock’s ETF for Bitcoin. It made waves when it was spotted on a roster maintained by the Depository Trust and Clearing Corp., an entity affiliated with Nasdaq responsible for the clearing of stocks and ETFs, as cited by Reuters.
Earlier in June, BlackRock, the world’s premier ETF provider with asset management crossing trillions, initiated the process to register a Bitcoin spot ETF. Should it gain approval, this would undoubtedly cement Bitcoin’s standing in the financial world.
However, Samer Hasn, an expert analyst at the online brokerage XS.com, cautioned that its appearance on the DTCC’s list doesn’t guarantee a launch. “It’s plausible that BlackRock is in the preliminary phases of prepping for the ETF’s potential debut,” he remarked.
It’s noteworthy that BlackRock isn’t alone in this race. Grayscale Investments, among others, has also thrown its hat in the ring for Bitcoin ETFs. Although the U.S. Securities and Exchange Commission initially vetoed Grayscale’s proposition, a subsequent verdict from a panel at the DC Court of Appeals in August turned the tables, challenging the regulator’s initial stand. This unexpected twist was a boon for cryptocurrencies during the subsequent months.
However, a word of caution from Hasn regarding the quicksilver rise of Bitcoin is worth noting. “These swift ascents seem a bit overblown. The overarching shadow of regulatory and legislative issues hasn’t dissipated, and the foreseeable future holds ongoing legal tussles,” he opined.
Beyond the realms of legislation and speculation, another factor might be influencing Bitcoin’s ascendancy: fear. In these unpredictable financial climates, investors are hunting for alternative avenues, and many are eyeing Bitcoin, paradoxically, as a digital fortress. Now frequently referred to as the “digital gold,” Bitcoin offers an attractive alternative for those keen on diversifying from the conventional stock and bond offerings.
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