ANDl bitcoin rose 6% on Tuesday, to $35,198, its highest level in almost a year and a half, on growing speculation about the imminent approval of a fund from the cryptocurrency listed on the stock exchange.
The day before, bitcoin recorded its best day in almost a year, with an advance of 10%, and optimism spread to the entire cryptocurrency market and related securities.
The U.S. Securities and Exchange Commission’s (SEC) approval of an exchange-traded fund (ETF) that holds bitcoin on behalf of investors is expected to fuel demand.
A spot bitcoin ETF, it is argued, would allow investors previously wary of cryptocurrencies to access the asset through the stock market, bringing a new wave of capital to the sector.
“The value of (…) any asset is, basically, the number of people who use it,” said Steen Jakobsen, chief investment officer at Saxo. “So the ETF would have a large audience and increase liquidity.”
Bitcoin, a volatile asset whose price has doubled so far this year, rose 8.7% in its last price, to US$34,282. The second largest cryptocurrency, ether, advanced 6.3%, to US$ 1,816.60, its highest since August.
Cryptocurrency-linked stocks, such as major U.S. exchange Coinbase Global and bitcoin owner MicroStrategy, also rose.
Source: Reuters
Source: Gestion
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