The price of ethereum, XRP, and other significant cryptocurrencies have surged due to the rapid rise of bitcoin in 2023. It appears that 2024 will be an even more significant year for cryptocurrencies.
Due to high hopes of an impending Wall Street earthquake, the price of bitcoin has risen to about $38,000 per bitcoin from lows of about $15,000 per bitcoin last year.
Now, as the market reels from the U.S. government initiating a “countdown” to Binance’s demise, the former president of the New York Stock Exchange has forecast that when a long-awaited bitcoin spot exchange-traded fund (ETF) is eventually approved, money will “flood” into the market.
Tom Farley, the current CEO of the bitcoin and cryptocurrency exchange Bullish, backed by Peter Theil, told that money will flood into the space with a bitcoin ETF because it’s so simple to purchase. People have faith in bitcoin. Bitcoin is an amazing creation. It serves as a value store.
In June, the world’s largest asset manager, BlackRock, which manages approximately $10 trillion on behalf of clients, applied to create a bitcoin spot ETF, with cryptocurrency exchange Coinbase serving as its custodian. This move caused the price of bitcoin to soar.
Wall Street went into overdrive to get a bitcoin fund on the market after BlackRock’s historic bitcoin spot ETF filing. Coinbase researchers forecast that the impending bitcoin exchange-traded fund (ETF) boom would create an opening for the $48.3 trillion U.S. wealth management sector to enter the cryptocurrency space.
The U.S. Securities and Exchange Commission (SEC), a regulator that has repeatedly denied applications for a bitcoin spot ETF over the past ten years, was defeated in court by asset manager Grayscale, giving bitcoin and cryptocurrency traders additional momentum.
Considered by many to be an indication that the SEC will eventually approve the move, a court ordered Grayscale to reevaluate its proposal to transform its flagship bitcoin trust into a full-fledged bitcoin spot ETF.
Farley continued, “Everyone knows that bitcoin is not a security, even the regulators.”
Leaked SEC chats purportedly showed the agency is in talks with cryptocurrency exchanges regarding ETF applications, according to a prominent ETF analyst last week.
A bitcoin ETF, according to some cautious market observers, will eventually but gradually aid in the price recovery of bitcoin.
In an email, Laurence Latimer, the CEO of enterprise banking software company Dinara, stated, they believe that the actual uptake will be slower than anticipated, even though everyone predicts that a bitcoin ETF and an ethereum ETF will get approved and launch with tremendous enthusiasm.
Furthermore, we believe that the approval will fuel a spike in demand for bitcoin, raising prices and re-establishing bitcoin as a “good” thing rather than a controversial story, which will hasten mainstream adoption.