Get all your news in one place.
100’s of premium titles.
One app.
Start reading
International Business Times
International Business Times
Business
Nica Osorio

Bitcoin Bold Leap: ETF Green Light, Start Of Trading Drive Price Above $49K

5 Common Bitcoin Scams and How to Avoid Them (Credit: Pixabay)

In an electrifying display of market confidence, Bitcoin's value surged toward the $49,000 mark, buoyed by the groundbreaking approval of the first-ever spot Bitcoin Exchange-Traded Fund (ETF) and the start of trading of BTC ETFs on U.S. exchanges.

This historic decision by the U.S. Securities and Exchange Commission (SEC) has unleashed a wave of investor enthusiasm, firmly placing Bitcoin at the forefront of a potential new chapter in the world of cryptocurrency.

As traditional and institutional investors alike rally around this watershed moment, the cryptocurrency market is witnessing a paradigm shift, which industry watchers and analysts opined, as one that could redefine its trajectory for years to come.

The market's positive sentiment was evident in the value of Bitcoin, the world's oldest and largest crypto asset by market capitalization, which soared about 3% on the day and briefly hit the $49,000 price point Thursday morning (after the U.S. stock exchanges started trading) before receding below the $47,000 price level, data from CoinMarketCap showed.

Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International, explained Bitcoin's price movement post-SEC's BTC ETF decision.

"The volatility in the aftermath of the announcement was nearly non-existent, likely influenced by the previous false news that was momentarily believed to be true. The news was revealed with BTC trading at approximately $45,000, showing minimal initial volatility," Greco tole International Business Times via email. "However, the market response was positive, with BTC surging above $47,000 hours after the official announcement and various altcoins experiencing a robust uptrend."

For Nathan McCauley, CEO and co-founder of Anchorage Digital, home to the only federally regulated crypto bank in the U.S. SEC's approval of Bitcoin ETF will allow the crypto asset to be a part of every portfolio, with a potential inflow of trillions of dollars into its ecosystem through regulated and easily accessible channels.

"A spot Bitcoin ETF marks the end of crypto as a 'novel' asset class—and the beginning of a world where it can be part of every portfolio," McCauley told International Business Times via email. "SEC approval opens the floodgates for trillions of dollars to safely flow into the digital asset ecosystem via a regulated and accessible wrapper that suits consumers and institutions of all types."

Ryan Lee, Research Chief Analyst at crypto derivatives exchange Bitget, noted that the launch of Bitcoin ETF in the U.S. will greatly benefit the market and enumerated.

"The industry secured the green light, the market stands to gain from many positive undertones. It will provide a regulated investment vehicle, which traditional investors can leverage to enter the market. The impact of this approval can't be understated: it'll shoot up the BTC price, get institutional capital flowing in, and drive an uptick in the exchange user base. Also, more mainstream investors will explore all avenues to gain exposure to the nascent asset class," the executive told IBT.

"With the Bitcoin ETF and the new set of buyers it will bring, there will be a higher demand for innovation to meet the high standards these traditional investors might place on the market. This will generally boost the industry's evolution and position it to leverage unique opportunities moving forward. In all, the approval of a Bitcoin ETF will make the industry more adaptable to regulations, creating diverse products that cater to different segments of the global financial industry," Lee further said.

Bitcoin is still on the uptrend trading at $46,213.03 as of 12:05 p.m. ET on Thursday with a 24-hour trading volume up by 51.56% at $62,010,361,561.

The crypto asset's latest price action represents a 1.28% spike in its value in the last 24 hours and a 4.20% gain over the past seven days.

Bitcoin's current circulating supply stands at 19,595,800 BTC and its market cap is at $901,469,274,339, data from CoinMarketCap shows.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.