Bitcoin experienced a notable surge, surpassing the $47,000 mark and reaching its highest level in 21 months at the beginning of this week. This movement comes amid expectations of the potential approval of Bitcoin ETFs in the United States.
In the last session, the cryptocurrency showed an increase of 3.14%, reaching $46,792 according to CoinMarketCap data. This uptick was supported by the submission of final updates, including key fee disclosures, by potential ETF issuers such as BlackRock and Grayscale to the SEC, boosting investor confidence in the likelihood of approval.
The SEC is nearing its first deadline to approve or reject one of the ETF applications, in this case, submitted by Ark 21Shares, scheduled for Wednesday. There is widespread anticipation that the agency will approve multiple applications simultaneously to level the playing field.
Wednesday Could Mark the First Bitcoin ETF
Former SEC chair Jay Clayton stated on CNBC that approval is inevitable, emphasizing that there are no pending decisions and that this step represents a milestone not only for Bitcoin but for the financial industry as a whole.
This potential development is shaping up as a historic decision for the cryptocurrency industry, which, despite its anti-establishment roots, managed to demonstrate the value of assets like Bitcoin and Ether to the institutional investment community. Prominent firms such as Fidelity, Invesco, VanEck, WisdomTree, and Franklin Templeton are among those competing to launch a Bitcoin ETF alongside BlackRock.
The significant rise in Bitcoin also coincided with a decrease in bond yields, as the yield on the 10-year Treasury note lost nearly 4 basis points on Monday.
The Growth Wave Expands Across the Industry
This optimism surrounding BTC also had a positive impact on other cryptocurrencies, such as Ether, which saw a 4% increase. Several of the companies seeking a BTC ETF have also filed applications to launch Ether ETFs, although the SEC’s deadline for these applications will come later in the year.
The effect of this movement also extended to cryptocurrency-related stocks. Coinbase recorded a 3.5% increase, while mining companies like Riot Platforms and Marathon Digital experienced gains of over 7%. Iris Energy rose nearly 4%, and CleanSpark advanced 5%.
Despite some investors claiming an overestimation of the day-one impact of approval, the financial community acknowledges that this event itself would open new opportunities for BTC investments, especially from institutions taking a longer-term perspective.
Galaxy Digital, in collaboration with Invesco on its proposed Bitcoin ETF, estimates that the potential market size of a BTC ETF in the United States could reach approximately $14 trillion in the first year after launch, expanding to $26 trillion in the second year and $39 trillion in the third year.