Rise in cryptocurrency prices, driven by a potential Bitcoin fund

Investors anticipate regulatory approval of an exchange-traded fund tied directly to Bitcoin, which they hope will encourage more people to invest in the digital asset.

This month, in a Manhattan courtroom, the cryptocurrency industry had to take stock since its former star, Sam Bankman-Fried, was convicted of fraud in a trial that exposed the excesses of the industry.

But the always volatile cryptocurrency markets were already evolving.

Shortly before Mr. Bankman-Fried's verdict Landing on November 2, the price of Bitcoin surpassed $35,000, its highest level since the industry collapsed in 2022. Last week, Ether, the second most popular digital currency, jumped 10 % to reach around $2,100, its best performance in months. Some investors have been quick to declare an end to the so-called crypto winter of falling prices and financial scandals that have plagued the industry over the past 18 months.

It is the engine of renewed euphoria. ? A potential new fund.

Crypto investors are increasingly optimistic that the Securities and Exchange Commission will approve an exchange-traded fund, or ETF, that follows the price of Bitcoin, according to analysts. said. The fund would trade on traditional exchanges and offer people an easy way to invest in cryptocurrencies, potentially bringing a wave of money into the industry.

Some supporters have hailed the possibility of this new investment vehicle, known as the Spot Bitcoin ETF, as the “salvation” of crypto. In August, Grayscale Investments, a crypto asset manager, won a legal victory against the S.E.C. that appears to pave the way for offering the Bitcoin product. And last week, BlackRock, a giant fund manager, filed paperwork to create a similar ETF. to track the price of Ether.

These new funds “could represent a watershed moment,” said Michael Sonnenshein, chief executive officer of Grayscale. “We are already starting to see quite a few signs of the winter melt of cryptocurrencies.”

The crypto industry has been yearning for good news since the market collapse of last year, which wiped out billions of dollars in savings virtually overnight. But the approval of a Bitcoin ETF. is not guaranteed, and some analysts have expressed doubts about whether it would attract much new investment in the crypto world.

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