The bitcoin rate rose above $35 thousand on Tuesday for the first time since May last year.
As of 18:15, it gained 9% and amounted to $34.362 thousand. During the session, the rate reached $35.142 thousand.
The rise in the value of bitcoin is driven by growing investor expectations that the United States will soon approve the creation of exchange-traded funds (ETFs) for direct investment in cryptocurrencies, Market Watch reports.
In the past, the US Securities and Exchange Commission (SEC) has repeatedly rejected applications from investment companies to launch such ETFs, arguing that there are high risks of market price manipulation. However, cryptocurrency industry experts believe that the situation will soon change.
On Monday, the U.S. Court of Appeals ruled that its August decision, which overturned the SEC’s earlier ban on the conversion of the Grayscale Investments cryptocurrency trust into a spot bitcoin ETF, should come into force.
Experts note that the emergence of such products on the market will facilitate the wider adoption of bitcoin.
If bitcoin ETFs are approved, we may see a “historic jump in the value of the cryptocurrency” and a market shift to a bullish trend, says Alex Adelman, CEO and co-founder of Lolli.
BlackRock Inc. and Fidelity Investments are among the companies ready to offer similar products.
This tool “will give institutional and retail investors new ways to grow their bitcoin investments within the current regulatory framework”, Adelman says.
The stock prices of cryptocurrency companies Coinbase Global Inc., MicroStrategy Inc., Riot Platforms Inc. and Marathon Digital Holdings Inc. are up 13%, 14.8%, 14.5% and 17.5%, respectively.
