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According to CNBC, Bitcoin could reach new highs this year if the US Securities and Exchange Commission (SEC) approves the first-ever spot Bitcoin exchange-traded fund (ETF).
ETFs enable more ordinary investors to indirectly hold Bitcoin through the purchase of a stock exchange share. The SEC approved rule modifications on Wednesday to allow for the development of ETFs, but stated that the move “should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”
Several crypto specialists confirmed to CNBC this week that the move will broaden the pool of investors who can obtain exposure to bitcoin.
“I think this is a really big breakthrough for Bitcoin as a digital asset, it’s a much broader story for digital property in general,” founder of SkyBridge Capital Anthony Scaramucci told the outlet. “I think Bitcoin will probably see its all-time high at the end of the year, and is likely to go through its all-time high by the end of the year.”
Scaramucci went on saying “Could bitcoin be $100,000, which is more or a little bit more than double over the next year? I do believe that.” He noted, however, that “I have been wrong so many times before.”
Experts believe the next Bitcoin ‘halving’, a mechanism to limit supply that occurs every four years and is scheduled for late April, might be another driver of price growth. According to Tim Draper, founder of Draper Associates, the halving in a few months might drive Bitcoin’s price above $250,000 by July.
The cryptocurrency business has recently experienced a succession of controversies, beginning with the collapse of the FTX crypto exchange in November 2022. This brought the sector under heavy investigation from US politicians, culminating in the conviction of former FTX CEO Sam Bankman-Fried.
Binance, another large cryptocurrency exchange, was fined $4.3 billion in November 2023 for a variety of offences, including money laundering and bank fraud.