The price of Bitcoin on Tuesday rose to its highest level since May last year. The price of the world’s most popular cryptocurrency is being boosted by expectations that a listed fund will soon be created that will invest directly in bitcoins.
The price of Bitcoin is now about $34,500, an increase of 10 percent. Earlier in the morning, the cryptocurrency reached $35,000 for the first time since 2022. Since the beginning of this year, the value of Bitcoin has risen by more than 100 percent.
The potential approval in the coming weeks of the first so-called spot Bitcoin ETF, a private investment fund focused on bitcoin, is fueling demand for speculation in the currency. Major asset managers BlackRock and Fidelity Investments are among the companies racing to offer such products. It is now hoped that the US Securities and Exchange Commission (SEC) will approve these investment products. According to BlackRock CEO Larry Fink, these products will make it easier and cheaper for investors to invest in digital currency.
The SEC has so far resisted allowing ETFs that invest directly in Bitcoin, with the watchdog citing risks such as fraud and price manipulation. Bitcoin rose 10 percent at the beginning of last week on optimism about the Bitcoin exchange-traded fund. This jump in prices was caused by an incorrect report that BlackRock had received approval for its ETF. However, the price soon dropped again after the message turned out to be incorrect.
Unrest and scandals
Bitcoin’s price is still well below the record level of around $69,000 reached in November 2021. Cryptocurrency price movements are often very erratic. The cryptocurrency market is regularly shaken by turmoil and scandals, such as the collapse of the main trading platform FTX last year.
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