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Investors Flock To Bitcoin ETFs As Digital Currency Tops $70K

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Bitcoin prices on May 17

(CTN News) – Earlier on Monday, bitcoin crossed the $70,000 mark for the first time.

According to a report that was released by Reuters on Monday (May 20), at one point in time, it was $3,931 higher than its previous closing and 82.3% higher from its 2024 low, which it established on January 23rd. This information was provided since the news was published.

At the very least, the surge can be attributed, at least in part, to the approval and launch of spot bitcoin exchange-traded funds (ETFs) this year, as stated in the article. Through the use of these exchange-traded funds (ETFs), new investors have been drawn in, excitement regarding the cryptocurrency has been reignited, and the decrease in prices that was noticed during the “crypto winter” of 2022 has been reversed.

Cointelegraph highlighted a “noticeable surge” in spot buying as well as spot purchasing of bitcoin exchange-traded funds (ETF products) when it announced on Monday that bitcoin had broken the $70,000 barrier. This is in a similar spirit to what was mentioned earlier.

After the Securities and Exchange Commission (SEC) granted its approval to bitcoin exchange-traded funds (ETFs) earlier this year, investors once again grew more interested in cryptocurrency. As a consequence, the price of bitcoin reached an all-time high of $73,000 in the month of March, which was the highest it had ever been.

It was also disclosed on Monday that venture capital investment in cryptocurrency businesses is on the rise, following a period of nearly two years during which it had been below normal. This development came after the investment had been below average.

Block, the business that is responsible for Cash App and Square, revealed on May 2 that it is also a substantial owner of bitcoin when it made the announcement.

This information was made public on the occasion of the presentation of Block’s most recent quarterly profit statistics. The company’s investment in bitcoin, which had been valued at $200 million at the end of the quarter, had climbed by around 160% and was now valued at $573 million.

Bitcoin had previously been valued at $200 million.

According to the letter that Block CEO Jack Dorsey addressed to shareholders, “We believe that the world needs an open protocol for money, one that is not owned or controlled by any single entity.”

This statement was made in reference to the open protocol for money. We are of the opinion that bitcoin is the most promising and the only alternative for that protocol, and that it will eventually become the currency that is native to the internet. This is the opinion that we hold.

The most recent “halving” of bitcoin, which is a preset event that takes place every four years and increases the amount of coins that are available to be mined by a factor of two, took place in April.

This event is known as a “halving.” The widely utilized cryptocurrency experienced an increase in the quantity of scarceness as a consequence of this incident, which was the anticipated outcome.

It was said at the time that a considerable number of investors anticipated significant returns in the months to come, and this was based on the outcomes that had been achieved in the immediate past.

The price of bitcoin climbed by approximately 93 times, 30 times, and 8 times, respectively, after the halvings that took place in 2012, 2016, and 2020. This is in comparison to the price of bitcoin on the day of the halves.

SEE ALSO:

Dollar Holds Firm As Fed Focus Intensifies; Stocks Slide; Crypto Soars

Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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