Blockchain reaction… Bitcoin, the world’s largest cryptocurrency with a nearly $820B market cap, topped $40K yesterday, hitting its highest level since April 2022. The crypto’s boom has been linked to growing hopes of rate cuts next year and the expected launch of the first-ever US spot bitcoin ETF, which would help investors get direct exposure to the coin without actually owning it. Now good cheer is spreading industry-wide:
Digital gold diggers: Crypto mining biggies like Riot Platforms, Marathon Digital, and CleanSpark saw their stocks surge yesterday. Shares of Coinbase, the largest US crypto exchange, rose 5%.
FYI: Bitcoin prices have more than doubled this year, while ethereum (the second-largest crypto by market cap) is up 75%.
Crypto’s mea culpa… Bitcoin prices hit multiyear lows last year after several scandals (including FTX’s collapse) rocked the market. But insiders say the industry’s turning the page: last month Binance agreed to pay a record $4.3B in fines and pleaded guilty to breaking anti-money-laundering laws. Now crypto investors are turning their focus to ETFs. The SEC has received several spot bitcoin ETF applications, including from investment titan BlackRock. Last week the regulator met with Grayscale to talk about potentially converting its Bitcoin Trust into an ETF after initially rejecting the proposal.
Delays don’t mean denials… More than a decade after the first spot bitcoin ETF application, investors think approval is finally within reach. While the SEC could still decide to block crypto spot ETFs, experts say the funds could launch as soon as early next year. Amid the optimism, bitcoin’s on track for its best annual performance since 2020.