By Bitcoin, the leading cryptocurrency, saw a rise in its value during Friday’s trading session. However, the performance of other cryptocurrencies was mixed. At present, the crypto sector is closely monitoring the potential approval of exchange-traded funds (ETFs) linked to the spot trading of Bitcoin.
Bitcoin experienced a 1.8% increase, reaching $43,862 over the past 24 hours. Although it briefly broke through the $45,000 mark, the largest cryptocurrency appears to have settled back into its trading range of $42,000-$44,000 since early December.
Recently, speculation surrounding the approval of a Bitcoin ETF has intensified. A report from TechCrunch revealed that the Securities and Exchange Commission (SEC) is expected to approve more than one spot Bitcoin ETF. According to sources close to the matter, TechCrunch reporter Jacquelyn Melinek made this claim on the social media platform X.
The SEC faces a deadline of January 10th to decide whether to approve an ETF application filed by ARK Invest and 21Shares solely or multiple applications simultaneously.
Matteo Greco, a research analyst at Fineqia International, wrote that “Numerous meetings between the SEC, issuers, and exchanges have fueled the narrative of an imminent approval. The introduction of ETFs could bring in new investor cohorts from traditional finance, significantly enhancing market transparency and liquidity and driving long-term capital inflow into the digital assets market.”
Moving beyond Bitcoin, Ethereum, which is the second-largest cryptocurrency, experienced a 1% increase, reaching $2,249. Among smaller cryptocurrencies, Solana witnessed a 1.7% rise, while Cardano suffered a 3.3% drop. Dogecoin showed a slight increase of 0.3%.
Overall, the cryptocurrency market remains dynamic as Bitcoin continues to capture attention with its recent movements. The potential approval of Bitcoin ETFs adds an additional layer of anticipation and speculation within the industry.
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