Bitcoin was rising as the crypto sector remains on tenterhooks over the potential approval of exchange-traded funds tied to spot trading of Bitcoin, with a regulatory deadline looming Wednesday.
Bitcoin has gained 2.3% to $45,112 over the last 24 hours. The largest cryptocurrency looks to be regaining momentum after breaking through $45,000 for the first time in more than a year last Tuesday but then setting back below $44,000.
The…
Bitcoin was rising as the crypto sector remains on tenterhooks over the potential approval of exchange-traded funds tied to spot trading of Bitcoin, with a regulatory deadline looming Wednesday.
has gained 2.3% to $45,112 over the last 24 hours. The largest cryptocurrency looks to be regaining momentum after breaking through $45,000 for the first time in more than a year last Tuesday but then setting back below $44,000.
The Securities and Exchange Commission has a deadline of Wednesday to determine whether to approve the spot Bitcoin ETF application filed by ARK Invest and 21Shares. Analysts forecast that a green light for the application and several others would bring billions of investment into the space, with predictions ranging from around $164 billon to as much as $600 billion flowing into the ETFs and broader cryptocurrency trading.
Several potential ETF issuers on Monday published final details of their proposed funds. Grayscale Investments said it plans to cut the fee on its Bitcoin trust to 1.5% from 2% if the investment vehicle converts as planned into an ETF.
said it plans to charge 0.3% for its own Bitcoin fund, and 0.2% for the first $5 billion of assets over the first year.
While excitement over the potential approval has propelled Bitcoin, there’s no guarantee of a further rally, with some predicting it will be a “sell the news” moment.
Advertisement – Scroll to Continue
Julio Moreno, head of research at the data provider CryptoQuant, predicted that Bitcoin could fall to $32,000 if traders take advantage of the ETF launch to take some profits, according to The Wall Street Journal.
Beyond Bitcoin,
—the second largest cryptocurrency—was up 1.1% at $2,266. Among smaller cryptocurrencies
was down 0.6% and
fell 2.1%.
fell 2.3%.
Write to Adam Clark at adam.clark@barrons.com