Forex Top Team

Bitcoin Near Highest Level Since March 2022, SEC Approves ETFs

Bitcoin, the cryptocurrency, has been trading near its highest level since March 2022 in the trading on the 11th.

On the 10th, the U.S. Securities and Exchange Commission (SEC) announced the approval of 11 exchange-traded funds (ETFs) linked to Bitcoin’s underlying assets. This marks the first approval of Bitcoin physical ETFs in the United States.

Applications from BlackRock (BLK.N), Ark Investment/21 Shares (ABTC.S), Fidelity, Invesco (IVZ.N), VanEck, among others, have been approved. Out of these, three ETFs, including BlackRock’s ETF (IBIT.O), were already trading as of 09:30 GMT on the 11th (6:30 p.m. Japan time). It is expected that more ETFs will start trading on the 11th.

Bitcoin is currently trading around $46,250, up 0.6% from the previous day, maintaining the gains from earlier this week in anticipation of ETF approval. It has risen nearly 9% this year, reaching a high of $47,915 on the 9th, the highest since March 2022.

(Source: Reuters)

Regarding the future of Bitcoin, there are two prevailing views: one suggests “profit-taking due to material exhaustion,” and the other predicts “continuous upward movement.” While both possibilities exist, there is a higher likelihood that Bitcoin will continue to rise.

Several reasons support this outlook. First, the layer that entered the market speculatively before the ETF approval has likely realized a substantial portion of their profits.

Second, the news of ETF approval does not mark the end but the beginning of capital inflow, and those holding a long-term perspective are expected to continue buying. According to an analysis by the British bank Standard Chartered, funds of $50 billion to $100 billion are expected to flow in by 2024.

Third, the Bitcoin halving event, a significant event in the Bitcoin world, is still in play. Many believe that it is too early to sell their holdings.

As a result, the upward trend is likely to continue for some time. Therefore, I plan to continue buying on the dips.

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