Bitcoin has continued its recent rise and rose to just above $47,000 on Tuesday. The price of the world’s best-known cryptocurrency is boosted by the hope that the American stock exchange regulator will approve the first listed bitcoin funds this week.
LOOK. Explained in 2 minutes: what are crypto coins and how do they work?
In New York, bitcoin increased in value by 6 percent to approximately $46,900 on Monday. A level of more than $47,000 was even briefly touched, which was the first time since April 2022.
Several large financial investment companies, such as BlackRock, Ark, Invesco and Fidelity, submitted applications for listed bitcoin funds to the American stock market watchdog Securities and Exchange Commission (SEC) last year. Approval of the applications could generate billions of dollars in additional crypto investments. The SEC may make a decision on the first funds on Wednesday, according to business channel CNBC.
ETF funds
This is an investment product that moves in tandem with the price of the digital currency. Investors do not have to immediately buy bitcoins and store them in a digital wallet. Instead, they are given the opportunity to invest in bitcoin indirectly through those ETF funds.
The SEC previously blocked the arrival of these funds for fear that they could lead to market manipulation. But judges ruled last year that the regulator had to look at the admission again. The ETF would not be that different from other similar products that have been around for some time.
Record level
Last year, bitcoin increased in value by almost 160 percent, due to optimism about the funds and more interest from major investors in crypto coins. Bitcoin reached a record level of approximately $69,000 in November 2021.
Other digital currencies are also increasing in price, such as ether, Litecoin and XRP.
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LOOK. Explained in 2 minutes: what are crypto coins and how do they work?
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