Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 10 24T123133Z 1 LYNXMPEJ9N0J4 RTROPTP 4 FINTECH CRYPTO BITCOIN - Business Express
Representation of the bitcoin cryptocurrency and a price chart are seen in this illustration taken October 24, 2023. REUTERS/Dado Ruvic/Illustration

Bitcoin soars to near 18-month high as ETF speculation mounts


Bitcoin soars to near 18-month high as ETF speculation mounts

By Tom Wilson and Tom Westbrook

LONDON/SINGAPORE/NEW YORK (Reuters) – Bitcoin rose 6% on Tuesday to $35,198, its highest in nearly a year-and-a-half, on mounting speculation that an exchange-traded bitcoin fund is imminent.

That followed a 10% surge on Monday, when bitcoin posted its best day in almost a year, and the bullishness spread across the wider crypto market and into related stocks.

Any approval by the U.S. Securities and Exchange Commission (SEC) of an exchange-traded fund (ETF) that owns bitcoin on behalf of fund investors is predicted to fuel demand.

A spot bitcoin ETF, the argument goes, would allow investors previously wary of crypto access to the asset via the stock market, ushering in a new wave of capital to the sector.

“The value of … any asset, basically, is the amount of people using it,” said Steen Jakobsen, chief investment officer at Saxo. “So the ETF would make a large audience and increase liquidity.”

Bitcoin, a volatile asset whose price has doubled so far this year, was last up 8.7% at $34,282. The second-largest cryptocurrency, ether, climbed 6.3% to $1,816.60, its highest since August.

Crypto-linked shares such as major U.S. exchange Coinbase Global and bitcoin owner MicroStrategy rose in after-hours trade.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Investment giant BlackRock is among several major U.S. financial firms with pending applications for bitcoin ETFs.

Speculation on their likely approval was fuelled by BlackRock’s iShares ETF listing on the website of clearing house DTCC. It was unclear when or why the iShares ETF was added to the DTCC list. DTCC and BlackRock did not immediately respond to requests for comment.

Anticipation also grew after reports this month, including from Reuters, that the SEC won’t appeal a court ruling it had been wrong to reject an ETF application from crypto firm Grayscale Investments. On Monday, the court formalized its ruling, sending the application back to the SEC for review.

“The SEC being pressured by the courts increases the probability” of an ETF approval, said Standard Chartered’s head of digital assets research Geoffrey Kendrick.

Last week BlackRock denied an erroneous report that its ETF had been approved. Data on crypto derivatives analysis site Coinglass showed heavy bitcoin short-covering in the last 24 hours.

Separately, Grayscale on Tuesday introduced five crypto sector indices along with FTSE Russell which would track the performance of crypto assets in five categories: currencies, smart contract platforms, financials, consumer and culture, and utilities and services.

 

(Reporting by Tom Wilson and Elizabeth Howcroft in London, Tom Westbrook and Rae Wee in Singapore, Brigid Riley in Tokyo and Chibuike Oguh in New York; Editing by Shri Navaratnam, Simon Cameron-Moore, Michelle Price)

Recent Post: