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Bitcoin ETF Approval Sends Price Close to Record Highs

Posted: Wednesday, October 20th, 2021

Estimated Reading Time: 2 minutes

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The SEC’s possible approval of a Bitcoin ETF sends the cryptocurrency price close to record-high levels. Bitcoin’s market capitalization exceeds the one of Facebook.

The cryptocurrency market enthusiasts have piled their bets behind Bitcoin. The news that the Security and Exchange Commission (SEC) prepares the approval of the first Bitcoin ETF spurred more buying. Bitcoin reached as high as $65,000 in the first half of the trading year but has corrected ever since.

Bitcoin is up +50% this month alone, following a string of positive news and developments in the digital space. First, the disclosure that George Soros’s family office holds some Bitcoins sparked the move higher. Second, the expectations that the federal government will allow a bitcoin ETF. An ETF is an exchange trading fund that tracks the movements of the underlying asset and represents a cheaper alternative to trade it.

The move will allow retail investors to add Bitcoin to their 401(k) accounts and thus, Bitcoin appeals to a wider audience.

Bitcoin ETF

Bitcoin’s Market Capitalization Keeps Rising

Enthusiasts in the cryptocurrency market have targets for the price of one Bitcoin that defy any rationale. Some see it at $100k at the end of the year, and some others even higher. Truth be said, judging by the October gains alone, nothing seems impossible for Bitcoin.

However, doubters remain. The hedge-fund manager who made a fortune during the 2008-2009 Great Financial Crisis, John Paulson, sees cryptocurrencies as worthless. Others in the industry have similar predictions.

Nevertheless, despite the crackdown in China or the repeated warnings by famed investors regarding the cryptocurrency market being on the verge of collapsing, Bitcoin’s market capitalization keeps rising. It has now surpassed the one of Facebook and is inches away from taking over Silver.

Summing up, Bitcoin found buyers at the lows and rallies ahead of the ETF launch. The SEC’s blessing alone is a major sign that the cryptocurrency industry is here to stay.

A big win for Bitcoin fans.

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