The notorious cryptocurrency, Bitcoin, surged on Wednesday to nail a fresh all-time high, even as rampant volatility continued.
The price of the crypto rocketed above $35,000 Tuesday night, reaching an intraday high of $35,821, according to data from Coin Metrics. It subsequently fell back below the $35,000 level, mitigating gains slightly, Wednesday morning, but has since retaken the key level just after 1:30 PM EST.
Bitcoinâ€™s recent surge to new highs arrives just days after investors questioned its viability, as the crypto tumbled over 10% to $29,316. Overall, though BTC has been on fire, jumping more than 300% in 2020.
For years, there has been hope for a Bitcoin ETF to be approved, and for years regulators have continued to kill that dream, citing concerns over market volatility, industry manipulation, and thin liquidity.
Donâ€™t Give Up Hope
But issuers like VanEck have yet to give up hopes for a Bitcoin Exchange-Traded Fund (ETF).
VanEck Associates Corp. initiated a fresh drive to launch an ETF tracking the worldâ€™s largest digital currency, according to a filing last month with the U.S. Securities and Exchange Commission. The VanEck Bitcoin Trust would reflect the performance of the MVIS CryptoCompare Bitcoin Benchmark Rate.
There have been multiple applications for crypto-tracking ETFs over the years, and the SEC has denied them all, which underscores VanEckâ€™s commitment to the goal.
However, there have been some changes in the SEC, such as a shift in SEC leadership, where Jay Clayton relinquished his roleÂ as chairman, as well as a growing comfort with the crypto on Wall Street, that could favor an ETF this time, say analysts.
â€œAll indications from the SEC are that a bitcoin ETF still faces an uphill battle,â€� said Nate Geraci, president of the ETF Store, an investment advisory firm. â€œThat VanEck has the confidence to file for a Bitcoin ETF might indicate some shifting viewpoints within the SEC. Clearly, a key to watch as this drama continues unfolding is whom President Biden taps as SEC chair.â€�
With the Georgia runoff in the news today, some experts also see a Democratic Congress as a boon for Bitcoin.
Scaramucci, a former White House communications director, added that Democratic control of Congress would be â€œgreatâ€� for cryptocurrencies due to projections of â€œtremendousâ€� money printing under a federal government controlled by the party.
With the worldâ€™s largest digital asset gaining 300% last year, Bitcoin has also garnered attention from some of Wall Streetâ€™s most famous investors, like Paul Tudor Jones and PayPal Holdings Inc.
Bitcoin bulls envision its rally continuing, but many understand how its high-profile gains could attract greater scrutiny from regulators, with Biden-nominated Treasury secretary Janet Yellen referring to the crypto asÂ â€œhighly speculative assetâ€� and â€œnot a stable store of value.â€�
â€œBy filing now, it will restart the clock for a review when there will be new SEC membership and leadership,â€� said Todd Rosenbluth, director of ETF research for CFRA Research. â€œHowever, I think the SEC has made it clear they have concerns that need to be overcome.â€�
According to the filing, VanEckâ€™s ETF is set to hold Bitcoin and will value its shares based on prices contributed by exchanges that MV Index Solutions GmbH believes represent the top five exchanges for the cryptocurrency.
Such an ETF â€œcould be taken as bullish for Bitcoin because it does broaden the universe of investors who could be aware of Bitcoin,â€� said Everett Millman, finance expert with Gainesville Coins.
For more market trends, visit â€¯ETF Trends.
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