From NASDAQ.:

Cryptocurrency markets awaited approval of a spot Bitcoin ETF. Prices rallied to $49,000 per token before decreasing after eight spot ETFs began trading. Bitcoin reached record high of $68,906.48 in November 2021, falling to $15,516.53 in November 2022 before rallying 216% to a high of $49,021.86 in January 2024.

SEC approved eight spot Bitcoin ETFs. ETFs include GBTC, BITB, FBTC, EZBC, BTCO, BRRR, HODL, and BTCW. GBTC, with no endorsement from the SEC, is the most liquid and had over $27 billion in assets under management on January 24, 2024.

Chairman Gensler’s warning follows spot Bitcoin ETF approval. Gensler warned about risks associated with Bitcoin and products tied to crypto. This comes amidst opposition from legislators and illustrates governments’ control over money supply. The move validates Bitcoin, encouraging more market participation. However, an increase in regulation is expected if the cryptocurrency asset class’s market cap rises.

BTC is a model for higher Bitcoin prices. Many investors view Bitcoin as the new gold, with the successful GLD ETF as a model for GBTC and other spot Bitcoin products. The SEC’s validation could be a long-term bullish factor for Bitcoin.

Only invest what you can afford to lose. Heeding Chairman Gensler’s cautionary message is crucial for investors due to the substantial risks associated with Bitcoin. The highly volatile asset has as many detractors as supporters, keeping the future uncertain and prompting lots of volatility in markets.

More Crypto News from Barchart. On the date of publication, Andrew Hecht did not have (either directly or indirectly) positions in any of the securities mentioned in this article.



Read more: Cryptos: Why Did Spot Bitcoin ETF Approval Cause Prices to Decline?