The price of %Bitcoin ($BTC) has reached $35,000 U.S. as expectations grow that spot cryptocurrency exchange-traded funds (ETFs) will be approved in the U.S.
Bitcoin’s price moderated in overnight trading and is currently at $34,200 U.S. after hitting $35,000 U.S, its highest level since May 2022.
In the last two weeks, Bitcoin’s price has risen 30%, bringing its year-to-date gain to 106%.
The current rally is being driven by investors’ hopes that the U.S. Securities and Exchange Commission (SEC) will soon allow ETFs that hold Bitcoin to begin trading in America.
Analysts expect investors to flock to a Bitcoin ETF as it will be a cheaper way for them to gain exposure to the price movements of the digital asset, and they won’t need to buy and hold physical cryptocurrencies.
Some analysts have forecast that ETFs could add $1 trillion U.S. to the market capitalization of Bitcoin. Investors hope that ETFs will also be made available for other cryptocurrencies such as Ethereum (ETH).
Analysts say Bitcoin’s current rally is also being driven by heightened geopolitical risks and the conflict in the Middle East between Israel and Hamas.
Prior to the current rally, Bitcoin’s price had been hovering right around $26,000 U.S. since early August of this year.
Investment firms that include %BlackRock ($BLK), Fidelity, and %Invesco ($IVZ) have applied to offer a spot Bitcoin ETF in the U.S. A decision by the SEC is expected by January 2024.