Bitcoin transaction volume at 10-month high as new ETFs begin trading
- Bitcoin trading volume reaches 10-month high in anticipation of Wall Street ETFs launch.
- Confidence in traditional financial system shaken by recent bank collapses.
- US regulators approving Bitcoin ETFs seen as significant event for the digital asset sector.
Bitcoin trading surged to an almost 10-month high in anticipation of the opening bell on Wall Street. This surge coincides with the launch of the US's first exchange-traded funds (ETFs) directly investing in Bitcoin.
As of 7:15 a.m. in New York on Thursday, daily trading volume for Bitcoin across cryptocurrency exchanges reached $52 billion, the highest since March 21 of the previous year. This increase in trading activity occurred when confidence in the traditional financial system was shaken by the collapses of banks like Silvergate Capital Corp. and Silicon Valley Bank.
In a landmark move, US regulators have approved exchange-traded funds that directly invest in Bitcoin. This development is seen as a significant event for the digital asset sector, valued at approximately $1.7 trillion, as it broadens access to the largest cryptocurrency on Wall Street and beyond.
In October, reports surfaced that the US Securities and Exchange Commission (SEC) would not contest a court ruling that deemed the agency's rejection of an ETF application as incorrect. This development fueled speculation that approval for a spot bitcoin ETF was on the horizon, prompting increased optimism among investors. The introduction of a spot bitcoin ETF is seen as a significant development that could open the doors for hesitant investors to enter the crypto market through the stock market, resulting in a fresh influx of capital into the sector. Standard Chartered predicts that Bitcoin could reach six figures by the end of this year based on the "earlier-than-expected introduction" of the spot ETFs.