On Monday, the price of Bitcoin jumped over $40,000, which was a big step forward for the world’s biggest cryptocurrency. The price went up because people became more hopeful that the US would soon allow more trade of Bitcoin.
Reports say that regulators are thinking about whether to let exchange-traded funds (ETFs) that track Bitcoin work. Through traditional brokerages, ETFs would make it possible for a lot of private and institutional investors to get into Bitcoin. At the moment, most buyers can only buy Bitcoin through cryptocurrency exchanges or safe digital wallets. Approval of ETFs would make them much easier to get and trade in.
People who trade in Bitcoin are becoming more optimistic about its future if the SEC approves a Bitcoin ETF, as shown by Monday’s price rise. Several fund companies, like Fidelity and VanEck, have asked the SEC to start one, which shows that investment businesses want it a lot. As Bitcoin moves towards becoming a common financial tool, approval would be a big step forward.
Bitcoin is back to where it was in the middle of May 2021, after starting the year below $30,000. The price of the cryptocurrency seems to be closely linked to changes in US regulations that could make it easier for Wall Street institutions to adopt it.
