Approval by US regulators of exchange-traded funds that invest directly in world’s top crypto could reportedly drive up the price
Bitcoin could surge to record highs this year following a landmark approval of the first-ever spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), according to a report by CNBC.
ETFs allow more retail investors to hold Bitcoin indirectly via a share traded on a stock exchange. The SEC on Wednesday approved rule changes to allow the creation of the ETFs but said the move “should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”
Several crypto experts confirmed to CNBC this week the move would diversify the range of investors that can gain exposure to the cryptocurrency.
“I think this is a really big breakthrough for Bitcoin as a digital asset, it’s a much broader story for digital property in general,” founder of SkyBridge Capital Anthony Scaramucci told the outlet. “I think Bitcoin will probably see its all-time high at the end of the year, and is likely to go through its all-time high by the end of the year.”
Scaramucci went on saying “Could bitcoin be $100,000, which is more or a little bit more than double over the next year? I do believe that.” He noted, however, that “I have been wrong so many times before.”
Experts say the next Bitcoin ‘halving’ – a mechanism to limit supply that takes place every four years and next set for late April, could be another source of price upside. According to Tim Draper, founder of Draper Associates, the halving in a few months could spur the price of Bitcoin to hit $250,000 by July.
The crypto industry has suffered a slew of scandals recently, starting with the collapse of the FTX crypto exchange in November 2022. This placed the sector under intense scrutiny from US lawmakers and resulted in the conviction of former FTX CEO Sam Bankman-Fried.
In November 2023, another major crypto exchange, Binance, was fined $4.3 billion for various violations, ranging from money laundering to bank fraud.
Nevertheless, Bitcoin more than doubled in value during 2023, with the token’s price climbing some 152%. Other digital currencies also saw price gains. On Friday, Bitcoin was trading at over $44,000 per coin, after having briefly topped $49,000 this week, a level not seen since December 2021.
