As you must have seen, Bitcoin is rocketing higher, topping $35,000 for the first time since May 2022. It’s up a massive 20 percent over the past five days.
That means cryptocurrency has more than doubled in value this 2023. That happened because investors grew excited because they wanted to buy bitcoin funds that trade on good old-fashioned stock exchanges rather than having to deal with less-regulated crypto platforms.
“This listing in the DTCC does not mean that the fund has actually been launched or that this will inevitably happen,” said Samer Hasn, market analyst at online brokerage XS.com. “However, it may appear as part of BlackRock’s preparations to launch the ETF soon.”
Other companies have also applied for approval to launch similar bitcoin ETFs, including Grayscale Investments.
Although the US Securities and Exchange Commission had ruled against Grayscale’s ETF, a three-judge panel for the DC Court of Appeals in August overruled the regulator’s decision. The panel said the regulator had failed to adequately explain why it rejected the firm’s application.
That has helped boost cryptocurrencies throughout the summer.
Still, the SEC has not approved the fund, and investors may be getting out in front of their skis.
Reason One
According to the report, An expert thinks the rise in cryptocurrencies is subject to exaggerations…
“I think that these rapid rises in bitcoin are somewhat exaggerated,” said Hasn. “Regulatory and legislative concerns are still clouding this market, and I don’t see opportunities soon to dispel these concerns as the legal battles continue.”
Another Reason
The article also cited fear as the main reason cryptocurrencies are on the rise. It says, “As investors look to diversify their portfolios in uncertain times, some turn to bitcoin, ironically as a kind of digital safe haven. Sometimes dubbed “digital gold,” bitcoin has become a way for investors to branch out beyond traditional stocks and bonds.”