Bitcoin hits $35,000 for the first time since 2022, thanks to ETF optimism.

Oct 24
Bitcoin reached its highest price since May of last year as its advance was sustained by hopes of additional demand from exchange-traded funds.The greatest digital asset increased 11.5% to reach $35,000 and was trading at $34,580 as of 10:54 a.m. on Tuesday in Singapore, bringing its year-to-date recovery from the collapse in digital assets in 2022 to 109%.

Speculative interest in the token is being fueled by the potential approval of the first batch of Bitcoin ETFs in the United States in the upcoming weeks.

BlackRock Inc. and Fidelity Investments are two asset managers attempting to offer such products. ETFs, according to advocates of digital assets, will increase the usage of cryptocurrencies.
Despite opposition from the US Securities and Exchange Commission, a US federal appeals court cemented a victory for Grayscale Investments LLC on Monday in its attempt to establish a spot Bitcoin ETF.

Early last week, the ETF mania caused a 10% intraday increase in bitcoin as well. The action was initiated at the time by a false rumor that claimed BlackRock had obtained permission for the fund; once the inaccuracy was discovered, the rally died down.
In Tuesday's Bitcoin influx, Ether, the second-largest token, increased 7% to surpass $1,800, along with lesser tokens like BNB, XRP, and meme-favorite Dogecoin.

The Securities and Exchange Commission (SEC) has already approved the development of ETFs that hold bitcoin and ether futures, but the body has generally tightened its oversight of cryptocurrencies in the wake of last year's market crash and other explosions, such as the collapse of the FTX exchange, which was co-founded by Sam Bankman-Fried, who is currently on trial for fraud.

Bloomberg Intelligence analysts stated that although the timing is still uncertain, approval of a spot Bitcoin ETF appears to be close at hand and that the fund package is likely to be approved.

As rising interest rates reduce demand for risky assets, bitcoin is still below the peak it attained during the pandemic in 2021, when it nearly reached $69,000. Recent declines in the token's connection with various assets, including stocks, bonds, and gold, have led some to wonder whether institutional investors have abandoned the token.

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