The cryptocurrency marketplace is largely dominated by the presence of Bitcoin (BTC). As the price of BTC rises and falls, so does the entire crypto market.
Bitcoin prices tanked in 2022 and continued to struggle into 2023 but surged on November 9th to $37,322. Those are values that have not been seen since May 2022, but why?
The value of crypto is largely tied to futures and speculation. The latest price hike could be due to the potential for a pseudo-Bitcoin exchange to be established on Wall Street.
BlackRock, an investment management company worth over $8 trillion, is attempting to get the SEC to approve ETF Bitcoin trading. Using exchange-traded funds to invest in BTC generates interest from atypical players who don’t want to fool around with crypto keys and digital wallets.
That type of development grants confidence to investors, and in a speculative-based enterprise, faith can drive the market up for a given altcoin.
Bitcoin gambling happens anytime a purchase of the currency goes down. Buyers have no certainty as to what value BTC will hold in the future. ETFs give gamblers the ability to bet against BTC if they wish, potentially hedging against actual crypto holdings.
BlackRock is also including Ethereum ETFs in its proposal to the SEC. In fact, a recent corporate registration for an ETH exchange-traded fund by BlackRock in Delaware has set values for Ethereum north of $2,000.
“A massive short squeeze occurred overnight in ethereum. The funding rate is the highest ever and signals total panic for shorts… This is nuclear winter for everybody who doubted ethereum…”
Markus Thielen – Matrixport’s Head of Crypto Research and Strategy
The market shift suggests that the effort could have legs this time, but the SEC has rejected similar plans in the past. Other altcoins like Solana and Cardano have seen growth since the announcement, with the latter experiencing 40% gains in a few day’s time.
BlackRock is optimistic that approval from the Securities and Exchange Commission is forthcoming and could be rendered as early as January 2024.
While these crypto gains have been monumental, there’s still time to get in on the profits. If the SEC approves BlackRock’s Ethereum ETF, prices will soar across the board once again.
But this time, gains can be made on Wall St. and at the cryptocurrency exchanges for both Ethereum holders and ETF investors.