The price of Bitcoin has risen sharply in the past 24-hours, jumping above $34,000 U.S. and reaching its highest level in 18 months.
The big move higher comes as investor anticipation grows for a Bitcoin exchange-traded fund (ETF) to be approved by U.S. regulators.
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, has gained 5% in the last day to trade at $34,596.40 U.S., its highest level since May 2022, according to data from Coin Metrics.
Earlier in the day, analysts at JPMorgan Chase (JPM) said that a Bitcoin spot ETF is likely to be approved by the U.S. Securities and Exchange Commission (SEC) before Jan. 10, 2024, which is the deadline for a decision on an application made by Ark Invest.
Some analysts have estimated that the widespread approval of Bitcoin ETFs in America could boost the digital asset’s market capitalization by $1 trillion U.S. or more.
Anticipation for a Bitcoin ETF has hit fevered levels after a U.S. court ruled that crypto-focused asset manager Grayscale can turn its Bitcoin Trust (GBTC) fund into an ETF.
The court ruling was seen as a blow to the SEC, which had challenged the conversion of the Grayscale Bitcoin Trust into an ETF. However, the SEC said in recent days that it doesn’t plan to appeal the court’s decision.
JPMorgan cited the SEC’s decision not to appeal the court ruling as evidence that the regulator plans to approve cryptocurrency ETFs, likely within months.
A Bitcoin ETF would give investors exposure to the cryptocurrency’s price movements without having to own the asset directly. Bitcoin is volatile and its price fluctuations are often erratic.
Major financial institutions such as BlackRock (BLK), Invesco (IVZ), Fidelity, Ark Invest, and Grayscale have each applied for a Bitcoin ETF.
Bitcoin’s price reached an all-time high of $68,000 U.S. in November 2021. In 2023, Bitcoin’s price has increased 106% and is currently hovering right around $34,100 U.S.
