Cryptocurrencies have been thrust back into the spotlight to kick off 2024 after United States regulators made a significant announcement this week.
Bitcoin, the world’s largest cryptocurrency, has surged back into a bull market since it started to build significant momentum in September 2023. It was priced just under US$46,000 in the very early morning pre-trading hours on Friday, January 12, 2024. While it has posted a strong rebound, it is still trading more than US$20,000 off the all-time highs it reached in late 2021.
The major factor that has been bolstering Bitcoin and the broader cryptocurrency market was the impending United States Securities and Exchange Commission (SEC) decision on the launch of Bitcoin exchange-traded funds (ETFs). On Wednesday, January 10, the SEC announced that it had approved 11 spot Bitcoin ETFs. That said, the SEC continued to express its longstanding “discomfort” with the space. “We did not approve or endorse Bitcoin,” the agency statement read after the decision. “Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto.”
Regardless, investors reacted with tremendous enthusiasm to the launch. US Bitcoin ETFs saw $4.6 billion worth of shares trade hands as of Thursday afternoon. This is according to data released from LSEG. Bitcoin has been a household name for years, but it is still viewed with skepticism by many investors and professionals in the world of finance. The regulatory approval could be a huge step in Bitcoin and other top cryptocurrencies like Ethereum gaining mainstream acceptance.
