quotation bitcoinReference cryptocurrency broke its barrier $45,000 (EUR 40,767) was supported by the expected cycle change in monetary policy as well as the expectation that a Bitcoin ETF will soon be approved by the US Securities and Exchange Commission (SEC). Thus, the Bitcoin price increased by more than 6%, reaching $45,630, its highest level since April 2022. crypto winter It started with successive bankruptcies and interventions against brokerage firms and ended with the bankruptcy of brokerage firms in November 2022. FTX.
‘Halfing’
Bitcoin continues its rise, seeing a 21% revaluation since December 2023 and an impressive 174% in one year. Investors have returned to Bitcoin due to the belief that the approval of regulated vehicles for investing in cryptocurrencies could increase the price. Low interest rates in the USA also have a positive impact on the price of cryptocurrencies. The next bitcoin ‘halving’ is also influencing, which in practice means: Increase in production costs due to mining (technical process that rewards bitcoins for generating calculations). The ‘halving’ is the automatic emission reduction process that occurs every 210,000 cryptocurrency production blocks. Its aim is to reduce the issuance rate of the bitcoin monetary supply, and experts have already predicted that this will have a clear impact on the revaluation of the reference asset.
The fact that the SEC will make the expected decision in the coming days Authorizing the launch of Bitcoin spot ETFThis development, with a deadline of January 10, could mean unlocking investments in cryptocurrencies by affecting their future liquidity and building bridges for their conversion into fiat currencies.
According to Claudio Wewel, currency strategist of J. Safra Sarasin Sustainable AM, ‘halving’ or Halving the volume of bictoin produced “could be particularly important for miners”The cost of energy has remained significantly above levels prior to the last halving.” Wewel agrees that overall the Bitcoin halving “is seen as a positive tailwind among crypto investors and likely contributed to the recent rally,” as Bitcoin has been trading since 2012, in 2016 and 2020. It experienced a long-term rise after the ‘halvings’, but despite this, there is no consensus on whether the previous increases were due to these ‘halvings’ or other reasons.
ETFs
ETFs are a set of financial assets that replicate the movements of an index or market. (stocks, raw materials, currencies…). In this case, they will be financial instruments tied to the price of Bitcoin. The idea is that it can be bought and sold at any time on the stock exchange as if you were trading a stock, so it behaves like a security.
Companies that have publicly announced their intention to bet on Bitcoin-based investment vehicles include: Ark Investments and 21Shares, as well as Valkyrie, Bitwise, WisdomTree, Franklin Templeton, BlackRock, VanEck and Invesco. Dozens of asset managers would be interested in joining a successful brokerage business opened by ETFs.
Until now, The only approved cryptocurrency ETFs are tied to bitcoin and ethereum futures contracts on the Chicago Mercantile Exchange.. Brokerage costs will be around 0.80% of the investment, but some may be even lower. In recent years, the U.S. securities regulator has rejected numerous attempts to bring these products to market due to concerns about solvency, high risk to investors and tight oversight to prevent price manipulation.