Bitcoin's value soared to $35,198 on Tuesday, marking a significant increase from its 18-month peak of $34,766.80. This surge was driven by growing anticipation surrounding the potential approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). The speculation has not only boosted Bitcoin's price but also led to a rise in crypto-related stocks such as Coinbase (NASDAQ:COIN) Global and MicroStrategy in after-hours trade.
This bullish trend was further bolstered by a 10% rise in the previous session and an increase in Ether's value, which reached its highest since August. As per Coinglass data, significant Bitcoin short-covering in the last 24 hours has also intensified the speculation. Amid these developments, Bitcoin's price has doubled this year.
Investment firm BlackRock (NYSE:BLK) is at the center of this anticipation with pending Bitcoin ETF applications. The listing of BlackRock's iShares ETF on DTCC's website has further fueled the market's anticipation. A Bitcoin spot ETF, like the one proposed by BlackRock, would offer investors an indirect route into Bitcoin, circumventing the risks and technical complexities of direct ownership.
However, investors are exercising caution due to a false report on Bitcoin ETF approval last week that incited similar market fluctuations. The SEC denied these reports, stating that the ETF is under review due to technical difficulties. Nonetheless, Geoffrey Kendrick from Standard Chartered (OTC:SCBFF) suggests there are higher chances of approval as the SEC is unlikely to contest a court ruling against Grayscale Investments' ETF application.
Steen Jakobsen, CIO at Saxo, believes an ETF could attract new investors and increase liquidity in the market. While BlackRock awaits approval for its spot bitcoin ETF, other asset managers like Fidelity and Invesco have also lodged their applications, adding to the industry-wide anticipation.
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