Quiver Quantitative - Bitcoin, has witnessed an impressive ascent, escalating by almost 10% on Tuesday to a value of $34,872. This spike, marking its zenith in approximately 18 months, is propelled by fervent speculation regarding the potential endorsement of a Bitcoin-based exchange-traded fund (ETF). The ripple effects of this bullish sentiment pervaded the expansive realm of cryptocurrencies and even influenced associated stock values. A pivotal factor underpinning this optimism is the potential sanctioning by the U.S. Securities and Exchange Commission (SEC) of a bitcoin ETF. Such a development would empower a broader spectrum of investors, previously skeptical of the digital currency landscape, to allocate capital to Bitcoin via conventional stock market channels, thereby infusing the sector with fresh capital.
Steen Jakobsen, the Chief Investment Officer at Saxo, opined that the intrinsic value of any asset is intrinsically tethered to its user base, emphasizing that an ETF would invariably augment Bitcoin's audience and reinforce its liquidity. The buoyant trend wasn't exclusive to Bitcoin; ether, the crypto world's second prodigy, soared by 6.82% to reach $1,825.50, marking its most formidable stance since the prior August. In tandem with this surge, shares associated with the crypto sphere, including prominent entities like Coinbase Global (NASDAQ:COIN) and MicroStrategy (MSTR), witnessed an uptick in post-market trading.
Leading financial conglomerate BlackRock (NYSE:BLK), alongside other noteworthy American financial entities, is currently awaiting deliberations on their Bitcoin ETF (TSX:EBIT) applications. Speculation regarding the prospective approvals intensified post the enlisting of BlackRock's iShares ETF on the DTCC's website, though the rationale or timeline behind this inclusion remains nebulous. The investment community's anticipation was further fueled by reports suggesting the SEC's reluctance to challenge a court verdict that criticized its dismissal of Grayscale Investments' ETF application.
In a separate, yet significant development, Grayscale, in collaboration with FTSE Russell, announced the inception of five indices designed to meticulously track the performance of crypto assets across varied categories such as currencies, financial platforms, and utilities.
This article was originally published on Quiver Quantitative