Major asset managers are vying to be the first to get an exchange-traded fund (ETF) for spot bitcoin approved by the SEC. This coincides with a rise in the price of Bitcoin to over $43,500 and higher profits for those who retain it for an extended period of time.
Important Points
Due in major part to spot Bitcoin ETF registrations stepping up marketing operations ahead of anticipated approvals, the price of bitcoin has increased to $43,500.
By January 10th, 2024, the SEC may approve the first spot bitcoin ETF, which would be a historic step to encourage mainstream adoption.
Approximately 50% of family offices questioned have made investments in cryptocurrency assets, and more than 33% intend to increase their blockchain and cryptocurrency holdings.
The price of bitcoin is still rising; it is presently trading at $43,686, with resistance at $43,512 and support at $42,159.
Long-term investors' holdings of Bitcoin just reached a record high of 14.9 million BTC, surpassing break-even point as 90% of the supply is now profitable.
By January 10, 2024, the SEC is reportedly need to make a decision on multiple spot bitcoin ETF applications. Rivals such as Fidelity and BlackRock have stepped up their marketing initiatives, and Bitwise and Hashdex have just released significant advertising campaigns. It is anticipated that the first approval will greatly increase mainstream access.
Increasing optimism, SEC Chair Gary Gensler recently stated that he was in favor of regulating cryptocurrencies. Another limitation on his reach is a court decision that gives Grayscale the upper hand. A green light would increase Bitcoin's credibility and adoption rate.
The information supports Bitcoin's spectacular comeback following a terrible bear market in 2022. Encouraged by the surge in the fourth quarter, Bitcoin has broken through the crucial $43,000 barrier mark. It is now aiming for $44,697 and even $48,000 as its next targets.
An increase in holder profitability is what propels gains. Currently holding 14.9 million BTC, the biggest amount in 2023, are long-term holders who have added over 800,000 coins this year. Ninety percent of the circulating supply is now positive due to unrealized profits above break-even.
If momentum persists, upcoming favorable events like the 2024 halving might lead to additional upside. The rise of Bitcoin among institutions confirms its status as a maturing asset class, even in the face of persistent macroeconomic uncertainties.
Nearly half of family offices have allocated to cryptocurrency and blockchain assets, and over a third aim to grow their exposure, according to a new Grant Thornton poll. This indicates a more widespread acceptance of digital assets as diversifiers for portfolios.
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