Bitcoin experienced a significant surge of over 10% on Monday, briefly surpassing the $34,500 mark. This rally was fueled by continued optimism surrounding the potential approval of an exchange-traded fund (ETF) that directly invests in the cryptocurrency.
According to CoinDesk data, the largest cryptocurrency, BTCUSD, reached a peak of $34,616, its highest level since May 2022. However, it later retreated to around $33,021 by Monday evening. Other major cryptocurrencies also saw gains, with ether rising by 5.8% over the past 24 hours to reach $1,763.
The U.S. Securities and Exchange Commission (SEC) has consistently rejected bitcoin ETF applications in the past due to concerns about market manipulation. Nevertheless, industry participants remain hopeful that this stance will soon change.
In a significant development, a U.S. Appeals court recently upheld its ruling from August, overturning the SEC’s rejection of Grayscale Investments’ application to convert its Bitcoin Trust product GBTC into an ETF. This final ruling confirms Grayscale’s victory in court.
Furthermore, BlackRock’s proposed bitcoin ETF has been listed on the Depository Trust & Clearing Corporation. Although this listing does not guarantee approval, it does indicate progress for BlackRock in bringing the fund to the market.
Should bitcoin ETFs receive approval, experts anticipate “historical price increases” and the beginning of a crypto bull market. Alex Adelman, the chief executive and co-founder of Lolli, believes that Bitcoin ETFs will offer institutional and retail investors new avenues to invest in bitcoin while complying with established regulations.