Bitcoin ETF applications were approved by the US Securities & Exchange Commission in early January this year. Speculation was that the token would experience a significant surge. That could happen in the days to come, but what has certainly happened is a rise in the AUM, which is Assets Under Management. They are currently worth $10 billion within just one month of approval. Leading the charge are BlackRock and Fidelity, with their respective products.
AUM of $10 billion demonstrates that investors’ attention is undergoing a shift. Additionally, Bitcoin has begun to acquire popularity due to its reputation as a store of value. Given the expanding significance of the investment product in the financial environment, ARK Invest is optimistic. The prevailing argument is that Bitcoin effectively mitigates investor apprehension in the face of escalating interest rates and inflation.
BlackRock has reported a holding of $4 billion under the iShares Bitcoin Trust. The Wise Origin Bitcoin Fund by Fidelity holds approximately $3.4 billion. ARK 21Shares Bitcoin ETF has recently surpassed the milestone of $1 billion.
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The rise in crypto values is credited to the fact that there is less selling pressure from GBTC, the Grayscale Bitcoin Trust. It continues to sell a certain portion, but the pace has dramatically reduced. The impact is such that BTC has recovered from its low of $40,000. It is now exchanging hands at $48,347.56, a rise of 0.03% in the last 24 hours.
Also, GBTC recorded the lowest withdrawal on February 9, 2024. The Commission’s approval of Spot Bitcoin ETF applications has signified a turning point in the market. Firstly, it serves as evidence that institutional acceptance is increasing. Secondly, investors’ perspectives on Bitcoin may undergo a potential shift.
ETH has demonstrated the overall surge by rising to the value of $2,502.43 at the time of articulating this piece. While that is a slip of 1.01% in the last 24 hours, the value has surged by 8.53% in the last 7 days.
As ETF flow continues to drive an upward trajectory, estimates are surfacing that it will positively influence the price of the token. BTC is poised to touch $112k by the end of this year, assuming the flows continue to be optimistic. Alternatively, the worst-case scenario could be a valuation of $55,000, which is still a rise from the current margin. Not to forget that Bitcoin Halving is around the corner with the historical context of fueling the growth of the token.
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The year 2024 has experienced the approval of the Bitcoin ETF. It next has sights on how the market behaves at the Halving event. Prices initially rose after the ETF approval, but then they started to fall. That was amid the selling pressure from GBTC, which has cooled off, coupled with a slowdown in the pace.
