Become Our Next FunderPro Trader  Buy a Challenge

Bitcoin Reaches 21-Month High at $47K as ETF Deadline Approaches

Bitcoin Reaches 21-Month High at $47K as ETF Deadline Approaches

Tensions rise as the market stands by for the SEC’s spot Bitcoin ETF decision, propelling the digital asset near 2-year high

Key Takeaways

  • The SEC’s approval window closes on Wednesday
  • Bitcoin climbs over 5% in the last week alone

New Highs

Bitcoin surged as high as $47.2k in the last 24 hours, before settling in at the $46.5k level, the highest price for the coin since March 2022. The rush for the digital asset comes as Wall Street players place their bets on the Securities and Exchange Commission (SEC) giving the greenlight to one or more spot BTC exchange-traded funds (ETFs).

Over a dozen firms are waiting for the go-ahead from the federal agency, including investment giants BlackRock and Grayscale. The much-anticipated approval would pave the way for crypto’s regulated entry into the market, opening up a world of new avenues for investors who previously wouldn’t have considered touching a digital asset with a barge pole. 

In light of the potential approval, the increased accessibility could mean even further gains for the trailblazing coin. Analysts are expecting a surge for Bitcoin, but are remaining wary of any price dips stemming from investors looking to cash out to collect profits. 

The SEC has pushed back on filings for a spot BTC ETF until it could hold out no longer, thanks to a recent court win for Grayscale. SEC Chair Gary Gensler still has concerns regarding crypto, striking a serious tone in a recent post on X (formerly Twitter), where he highlighted the fact that crypto asset investments may not be complying with “applicable law, including federal securities laws”.

Risk Appetite

With all of this being said, it’s important to remember Bitcoin (and cryptocurrencies in general) for what they are – a volatile asset. As the situation evolves, it should be met with a certain understanding of the challenges and risks that can follow in a digital asset’s wake. It’s interesting to think that the excitement towards the pending ETFs might be uncovering a growing risk appetite among investors eager to jump on the bandwagon. 

Even with the allure of a regulated arena built to explore the cryptocurrency space, investors should still note that crypto was inherently designed to rebel and challenge the usual set of financial rules. It will be important to approach with a healthy mix of both excitement and caution.