Bitcoin recently breached a notable level around 45,000 dollars (about 40,767 euros), buoyed by expectations that monetary policy will shift and by anticipation that a Bitcoin spot ETF could gain approval from the US Securities and Exchange Commission (SEC). The move pushed the price to roughly 45,630 dollars, the highest since April 2022, signaling renewed appetite in the market after the crypto winter that featured a string of high-profile bankruptcy exits of brokerage firms, culminating in the collapse of FTX in late 2022. [citation: Market commentary, financial outlets]
‘Halfing’
Bitcoin has continued its ascent, showing about a 21% gain since December 2023 and a robust 174% rise over the past year. The surge is tied to renewed investor interest driven by the prospect of regulated investment vehicles for cryptocurrency, coupled with favorable US interest-rate conditions. The upcoming halving—an event that reduces the reward for mining roughly every four years—plays a key role in expectations for price revaluation. The halving process slows new Bitcoin issuance by design, with the next cycle scheduled after 210,000 mined blocks, potentially tightening supply and supporting prices. Market observers expect a positive impact on the reference asset’s valuation as supply dynamics shift. [citation: industry analysis]
The decision by the SEC on launching a Bitcoin spot ETF could unlock broader crypto investments, aiding liquidity and easing the path for converting holdings into fiat currencies. The anticipated ruling, with a decision window around early January, heightens the possibility of deeper access to crypto markets for a wider set of investors. [citation: regulatory briefing]
Claudio Wewel, a currency strategist at J. Safra Sarasin Sustainable AM, notes that the halving could be especially meaningful for miners because energy costs have remained higher than in prior cycles. He also suggests the halving has historically acted as a tailwind for crypto investors, contributing to rallies during 2012, 2016, and 2020. While previous halvings coincided with long-term price appreciation, there is ongoing debate about how much these cycles alone drove price increases versus other market forces. [citation: market commentary]
ETFs
Exchange-traded funds (ETFs) are financial instruments designed to mirror the performance of an index, sector, or asset class. In this context, Bitcoin-based ETFs would track the price movements of Bitcoin itself, allowing investors to trade as easily as they would a stock on major exchanges. This structure aims to simplify access to cryptocurrency exposure within traditional investment portfolios. [citation: financial education resource]
Public statements of intent from firms looking to launch Bitcoin-focused investment vehicles include names like Ark Invest, 21Shares, Valkyrie, Bitwise, WisdomTree, Franklin Templeton, BlackRock, VanEck, and Invesco. The growing interest from asset managers signals potential momentum for a broadened ETF landscape and deeper participation from institutional capital. [citation: investment industry roundup]
To date, the only confirmed crypto ETFs in the United States have been tied to Bitcoin and Ethereum futures on the Chicago Mercantile Exchange. Trading costs for these ETFs typically run in the vicinity of 0.80% of the investment, with some providers offering lower rates. In recent years, the SEC has rejected multiple attempts to bring additional crypto ETFs to market due to concerns about liquidity, solvency, investor protection, and price manipulation risk. Despite these hurdles, the ETF pathway remains a central topic in the broader discussion about mainstream crypto access. [citation: regulatory summaries]