Bitcoin price rises above $47,000 after US SEC approves ETFs
livemint.comBitcoin prices scaled above $47,000 for a brief period, witnessing a muted response to US Securities and Exchange Commission’s approval of exchange-traded funds (ETF) that invest directly in the token.
The world’s largest cryptocurrency Bitcoin traded 1.8% higher at $46,728 following the decision. Other cryptocurrencies also gained, with Ether, the second largest token, gaining 17% to $2,590.
Bitcoin prices had already jumped 166% in the past year, partly in anticipation of the ETFs, Bloomberg News reported.
Market participants expect the Bitcoin ETF approval to widen crypto’s investor base.
Also Read: ‘Landmark decision’: US regulator approves Bitcoin ETFs, boosting cryptocurrency market
The US SEC approved 11 applications, including from BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck, among others. Some products are expected to begin trading as early as Thursday.
Analysts believe Bitcoin ETF approval was already ‘priced in’ by the markets and Bitcoin prices may see a pullback if traders opt for profit taking after a sharp rally.
The US SEC last year lost a key legal fight against asset manager Grayscale Investments, raising speculation that the regulator would acquiesce to the spot ETFs. The digital-asset investment house is now converting the $29 billion Grayscale Bitcoin Trust, the largest fund investing in the token, into an ETF.
(With inputs from Agencies)
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