Bitcoin is experiencing an investment surge, pushing the value up to prices around $38,000 – levels practically unseen since last May 2022. This bullish rise is caused due to heightened demand from both exchange-traded funds (ETFs) and other digital asset holders. Bitcoin prices rose by a hefty 6.5% in the last 24 hours raising it to a high of $37,976, causing its YTD rebound to a remarkable 129%. Simultaneously, other cryptocurrencies like Ether have having marked upturns in their values.
Even with the delays from the U.S Securities and Exchange Commission (SEC) for approval of the first ETF directly investing in Bitcoin, continued anticipations denote that certain batches of said ETFs will gain permission sometime early next year. The introduction to the market of a vast number of these ETFs will lead to easy access to the cryptocurrency for institutional and retail investors around the world.
In parallel, the conclusion of The Federal Reserve halting its interest rates has further advocated to Bitcoin’s miraculous resurgence in price throughout 2021. Changes in financial markets’ liquidity levels are known to have severe implications on the cryptocurrency domain and highly likely contributed to the rise in liquidity. Consequently, industry analysts are conjecturing about how much BTC values might alter after these ETFs kick off in 2021. Even though approval most likely has already factored in during this spike in the virtual asset, the actual focus shifts to the positive inflow these ETFs will bring.