The largest cryptocurrency by market value has surged past the $67,000 mark, approaching its all-time high last reached in November 2021. The cryptocurrency’s upward momentum has been fueled by increased accessibility for investors, facilitated by the Securities and Exchange Commission’s (SEC) approval of the first spot bitcoin exchange-traded fund (ETF) earlier this year.
Bitcoin’s current price significantly increased from its all-time intraday high of $68,999.99 on November 10, 2021. The cryptocurrency has gained over 30% in value this year, outpacing the nearly 8% rise of the S&P 500.
The SEC approved the first spot bitcoin ETF on January 10, reigniting positive sentiment for the cryptocurrency. After this approval, eleven funds entered the market, including BlackRock’s iShares Bitcoin Trust. BlackRock’s iShares Bitcoin Trust has seen its assets surpass $10 billion, making it one of the notable players in the Bitcoin ETF space. BlackRock is currently the world’s largest money manager, overseeing over $9 trillion in assets.
Bitcoin ETFs provide investors with an efficient way to track the price of Bitcoin despite the inherent volatility and price swings associated with the cryptocurrency. The approval of these ETFs allows registered financial advisers to offer Bitcoin to their clients as an investment option. Additionally, Main Street investors can easily purchase Bitcoin through traditional brokerage accounts.
Several other bitcoin ETFs have been introduced by prominent firms such as Ark Investments, WisdomTree, Fidelity, Van Eck, and Grayscale, providing investors with diverse options for cryptocurrency exposure.
As bitcoin continues its ascent, market participants closely monitor its trajectory and the potential impact of these developments on the broader landscape of cryptocurrency investments.
