On Thursday, January 11, the price of Bitcoin continued to trade at $46,331, showing a slight benefit.
The US SEC has officially approved 11 Bitcoin ETF applications, including those from Blackrock, Fidelity, and Invesco, in a historic move. Even while Bitcoin did not respond to the news right away, it has nevertheless created a sense of excitement among the worldwide cryptocurrency community. Amidst this development, profits are starting to appear on the price chart.
On Thursday, Ether generated a 9.99 percent profit. As a result, the price of ETH has already reached $2,606. Ether is at a 20-month high at this point.
“The decision to greenlight 11 spot Bitcoin ETFs reflects a growing acceptance and recognition of digital assets within traditional financial markets. This move is expected to bring about increased adoption, liquidity, and overall market maturity. It also signifies a shift in the perception of cryptocurrencies from a niche asset class to one that is gaining mainstream acceptance,” Edul Patel CEO of Mudrex told Gadgets360.
Instead of trading on cryptocurrency exchanges, Exchange Traded Funds (ETFs) follow the value of the asset and are traded on conventional market exchanges. This makes it possible for users to interact with Bitcoin without registering on a cryptocurrency site. The SEC-approved Bitcoin exchange-traded funds (ETFs) will be offered on major US exchanges like NYSE Arca, Nasdaq, and Cboe BZX Exchange.
After word leaked online regarding the approval of the BTC ETF, the majority of cryptocurrencies showed gains. Binance Coin, Ripple, Cardano, Avalanche, Dogecoin, Polkadot, Tron, and Polygon are some of these altcoins.
In contrast to BTC, several cryptocurrencies like Chainlink, Shiba Inu, Litecoin, Bitcoin Cash, Cosmos, and Uniswap experienced an instant impact from the ETF approvals.
“Additional capital inflows into Bitcoin ETFs will also have an impact on the price movement in the future. The availability or scarcity of funds will be a major factor in market sentiment and price swings, influencing whether Bitcoin prices grow or fall. In order to properly develop their investment strategies, investors should constantly monitor the market’s reaction following the approval of ETFs and the flow of funds, as this event may cause extreme market volatility, according to Bitget Research Chief Analyst Ryan Lee, who spoke with Gadgets360.
On Thursday, a few cryptocurrency pairs did experience slight losses. Tether, Solana, USD Coin, Leo, and Bitcoin SV are a few of these.
“Now that the SEC has approved Bitcoin ETFs, it is expected that financial institutions in other regions will apply for similar businesses in the United States. To prevent large and medium-sized financial institutions from transferring their funds out of the region, other financial centres such as London, Hong Kong, Singapore, and Tokyo are also expected to introduce policies related to BTC spot ETFs. This will ultimately lead to the widespread globalization and adoption of cryptocurrency. Additionally, the attributes of cryptocurrency are likely to expand beyond BTC to include ETH, stablecoins, and other tokens, allowing more people to understand the significance of cryptocurrency,” Lee added.
As of Thursday, the total market capitalization of cryptocurrency is $1.76 trillion, or approximately. The market valuation increased by 2.77 percent on the previous day, according to CoinMarketCap.
Cryptocurrency is an unregulated digital currency and not a form of legal cash, that is vulnerable to market fluctuations. The content in this post is not meant to be, and does not represent, trading advice, financial advice, or any other kind of advise or recommendation that Techtrends Africa may offer or support. Any loss resulting from an investment made in response to a perceived forecast, advice, or other piece of information is not Techtrends Africa responsibility.