Bitcoin has surged 150% this year and hit $42,000 as expectations for a spot ETF grow.
Bitcoin has experienced a 150% surge in value throughout the year, surpassing $42,000 early Monday morning. This explosive growth comes amid growing anticipation surrounding the possible launch of a Bitcoin spot exchange-traded fund (ETF) in the United States.
The main factors contributing to Bitcoin’s recent surge appear to be the upcoming halving event, among other bullish developments, as well as growing speculation surrounding the approval of a Bitcoin spot ETF by US regulators. If these ETFs are approved, existing investors would be exposed to Bitcoin spot, potentially driving the asset’s price higher.
A few weeks ago on CNBC, Tom Farley, former chairman of the New York Stock Exchange, said, “Bitcoin ETFs will flood the industry with money, and they will be easy to buy.” “People believe in Bitcoin. Bitcoin is a great invention. It is a store of value.”
Market analysts have repeatedly emphasized that the introduction of ETFs will drive new inflows of institutional investments, further strengthening Bitcoin’s position as a mainstream asset class.
Last Thursday, Ric Edelman, founder of the $250 billion asset management firm, said financial advisors were waiting for spot Bitcoin ETF approval before offering BTC exposure to clients.
Last Friday, Grayscale said, “We believe that regulatory approval for a spot Bitcoin ETF in the U.S. is a matter of ‘when’ rather than ‘if’.” The next day, Bloomberg ETF analyst James Seyffart noted that the next window for potential ETF approval is now January 5-10, 2024. “In effect, this means that all potential approval orders are either Monday, January 8th, Tuesday, January 9th, or Wednesday, January 10th,” he explained. “Mark people on your calendar.