The world’s largest cryptocurrency, bitcoin, climbed above the $45,000 mark for the first time since April 2022.
Bitcoin surged on Tuesday, January 2, 2024, to begin the New Year, raising hopes of a potential licensing of the cryptocurrency for exchange-traded funds.
Bitcoin gained 156% last year, marking its best year performance since 2020, and hit a 21-month high of $45,532.
Even if it just increased by 2.5% to $45,318—a record high—it is still far from the peak of $69,000 that it reached in November 2021. Ether, the coin linked to the Ethereum blockchain network, was 1.45% higher at $2,386 on Tuesday after surging 91% in 2023.
Reuters reports that investors’ primary concern has been whether the U.S. securities regulator will soon approve a spot bitcoin exchange-traded fund (ETF), which would draw billions of dollars in investments and allow millions more people to participate in the bitcoin market.
The U.S. Securities and Exchange Commission has rejected numerous attempts in recent years to create spot bitcoin exchange-traded funds.
This was due to worries about market manipulation.
There have been increasing signs that regulators are prepared to give the go-ahead for at least a few of the thirteen planned exchange-traded funds for spot bitcoin.
The decision is anticipated to be made in early January.