Bitcoin Rises On ETF Bets

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Bitcoin experienced a significant surge of 10% on Monday, reaching its highest point in the past 1-1/2 years. This was followed by an increase in the prices of crypto-linked stocks, as news of a possible bitcoin exchange-traded fund (ETF) drove enthusiasm in the sector, leading short-sellers to abandon their positions. At the time of writing, the biggest cryptocurrency was trading at $32,833 after peaking at $34,283. Other cryptocurrencies such as ether also saw a rise of 6%, reaching a two-month high and breaking above its 200-day moving average.



The anticipation of a bitcoin ETF has grown recently, with reports indicating that the U.S. Securities and Exchange Commission (SEC) will not appeal a ruling that rejected Grayscale Investments’ application. If approved, a spot bitcoin ETF is expected to drive broader flows into the cryptocurrency, making it more accessible to investors who want to buy exposure without directly trading it. Many industry experts believe that the approval of a physical BTC ETF could happen within the next three months or sooner, with BlackRock, VanEck, WisdomTree, Fidelity, Bitwise, and Invesco all having pending bitcoin ETF applications.



The speculation about the approval of a bitcoin ETF has had a positive impact on the market, with investors liquidating their bitcoin short positions in the past 24 hours. Meanwhile, geopolitical tensions continue to drive demand for scarce assets, including physical gold and bitcoin, which many investors view as digital gold.


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