Bitcoin on Tuesday surged above the $8,000 mark for the first time since May, giving renewed hope to cryptocurrency bulls looking for strength from the market’s bellwether coin.
Bitcoin’s latest surge comes shortly after a positive stretch of trading which was inspired by encouraging regulatory development around the world, as well as news that established financial industry behemoths were looking to develop crypto businesses.
This week, bitcoin bulls are getting excited about the expected approval of a bitcoin ETF sponsored by VanEck and blockchain platform SolidX. The U.S. Securities and Exchange Commission is currently reviewing the application of this fund, and a source cited by ICO Journal said its chances of approval were “90% at this point.”
“The crypto markets have moderated and regulators have watched the lack of drama surrounding bitcoin futures across several global exchanges,” the unnamed source said. “In January we were justifiably concerned about a bubble and the harm a quickly approved product could attract speculators and create losses that led to significant lawsuits. Now, those factors seem to be mitigated significantly.”
A bitcoin ETF would make it easier for traditional investors to participate in the cryptocurrency market by reducing certain barriers to entry—namely, inefficient and unfamiliar exchanges—associated with purchasing coins directly.
It is also worth noting that the optimism displayed by ICO Journal’s source is based on evidence that should be uplifting for those who believe in the future of the cryptocurrency market. Bitcoin and its peers needed some risk mitigation, and if the SEC can recognize that this has indeed happened, investors should be interested as well.
Also within the past week, crypto enthusiasts celebrated the appointment of David Solomon as the new CEO of Goldman Sachs GS. Solomon has proven to be a proponent of big financial firms like Goldman adding cryptocurrency services to their businesses, saying as recently as last month that his company is looking to expand its offering of such services right now.
According to CoinMarketCap.com, the bitcoin price was up more than 15% over the trailing week as of 5:00 pm EST on Tuesday. This surge has not, however, been matched by all of bitcoin’s peers, as just three of the other 9-largest coins by way of market cap were in the green within the same time period.
Nevertheless, investors might also recognize that renewed bullishness surrounding bitcoin has resulted in gains for certain “proxy stocks” which exploded in popularity late last year as traders scrambled for ways to gain crypto exposure in their regular portfolios.
Riot Blockchain RIOT, for instance, has soared more than 40% over the past five trading periods. Meanwhile, the Bitcoin Investment Trust GBTC has gained nearly 12% since Friday’s close.
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