Bitcoin Price Surge
The price of bitcoin (BTCUSD) has reached its highest level this year, marking a significant increase of almost 90%. This surge comes as investors show renewed interest in the largest cryptocurrency by market cap, following a tumultuous period in the crypto markets over the past 13 months.
Key Takeaways
- Bitcoin’s price surpassed $31,000, hitting a year-to-date high.
- BlackRock’s ETF application has fueled investor appetite for the cryptocurrency.
- The SEC approved a two-times leveraged ETF set to commence trading soon.
Although still below its all-time high of around $68,000 in November 2021, bitcoin broke the $31,000 mark for the first time since April, briefly reaching $31,005. Prior to this, the cryptocurrency had not traded above $30,000 since June 2022, before the series of events that led to the collapse of FTX in November.
Factors Driving Bitcoin Prices
Bitcoin has experienced a resurgence in interest, particularly after asset management giant BlackRock (BLK) filed for a spot bitcoin exchange-traded fund recently. BlackRock’s filing outlined that its iShares Bitcoin Trust would only issue new shares if they are backed 1:1 with BTC.
Following BlackRock’s move, other traditional financial institutions like Invesco (IVZ) and Wisdomtree (WT) have revisited and refined previously rejected ETF applications.
Investors are optimistic that the approval of these new ETFs by the Securities and Exchange Commission (SEC) could lead to increased trading volumes for digital assets. While spot bitcoin ETF applications have been rejected by the regulator, there was a surprising approval for a 2X leveraged bitcoin fund. The Volatility Shares’ 2X Bitcoin Strategy ETF is scheduled to trade under the BITX ticker starting June 27.
Despite challenges such as the collapse of the FTX exchange and a stringent regulatory landscape, the cryptocurrency sector has shown resilience. Cameron Winklevoss, founder of Gemini and Genesis crypto firms, emphasized the urgency of buying bitcoin before the ETF opportunities expand.