BTC, ETH Reaches New All-Time Highs, As U K. Approved Bitcoin-ETF
The price of Bitcoin had an unprecedented spike, reaching a record high above $72,000, driven by a wave of confidence that followed the United Kingdom’s decision to accept cryptocurrency exchange-traded products (ETPs).
Around 6:50 a.m. Eastern Time, Bitcoin experienced a remarkable 3% increase, reaching a record-breaking $72,211.51 in value. The excitement was fleeting as the price declined, falling below $71,530.13 at 7:15 a.m. ET.
The United Kingdom’s decision to approve cryptocurrency exchange-traded products has contributed to the price explosion of Bitcoin by igniting investor interest in digital assets. Data from CoinShares says that cryptocurrency investment products had recorded a total inflow of $2.7 billion, bringing the total year-to-date record to $10.3 billion from the initial $10.6 billion recorded in 2021.
FCA Vows Not to Reject Appeal From Institutional Investors
The Financial Conduct Authority (FCA) has said in a public notice published on its website that it won’t be turning down requests from institutional investors or exchanges to form a United Kingdom-based cryptocurrency-induced ETN.
It says interested exchanges would have substantial control over their activities to guarantee adequate protection for professionals and investors. FCA also insisted that interested exchanges must fulfil all requirements by the United Kingdom guidelines.
Meanwhile, the London Stock Exchange (LSE) has confirmed the announcement by FCA, encouraging the public to adhere to the instructions. Analysis from different quarters shows that the FCA’s decision was propelled by the approval of the spot BTC ETF by the United States Security and Exchange Commission (SEC).
Traditional Financial Institutions Turns Receptive, As BTC Trading Volume Rises
Detractors has warned against undue enthusiasm and stress the speculative and volatile nature of cryptocurrencies. Traditional financial institutions and institutional investors are becoming more receptive to including cryptocurrencies in their portfolios. This trend is anticipated to speed up with the United Kingdom’s approval of bitcoin ETPs, opening the door for increased institutional involvement and capital inflows into the cryptocurrency market.
Speaking on the trend, NBC’s Anthony Kwan has commented that in the long run, Bitcoin and the cryptocurrency industry have bright futures ahead of them. He also stated that continued innovation, adoption, and regulatory clarification will fuel more significant expansion and widespread acceptance.
As of press time, Bitcoin has increased by 4.15% to reach $72,513.97 in the last 24 hours. The market capitalization is at $1,425,284,584,023 after attaining a 4.34% increase, with a 24-hour trading volume of $61,314,358,475, an 87.20% increase from the previous day.
However, Ethereum (ETH) has joined the race with the Bitcoin, as it hit $4000 earlier today, the first time in four years (December 2021). Investors are also looking forward to the Dencun upgrade expected to happen this week, hoping it will trigger another rise in Bitcoin price.
FCA Release Statement, Names Investors Allowed to Buy ETN
The FCA has specified that only professional investors can buy into Exchange-Traded Note (ETN). Currently, the United Kingdom doesn’t permit retail investors to acquire any form of cryptocurrency-related ETN, with the excuse that they are too risky for investors.
FCA has also expressed doubts about cryptocurrency Exchange-Traded Notes (cETNs), saying that cryptocurrency-related derivatives are incompatible with retail investors because of their risk. In a statement shared on NBC News, the agency said that the restriction on the sale of cETN to retail investors still stands.
It also said that it will continue to educate prospective investors about the risks domiciled in cryptocurrency investments, primarily caused by the industry’s unregulated sectors. It also added that investors should be ready to bear some financial losses in the process.
Explaining the difference between an ETF and an ETN, the FCA explained that while ETFs are a type of fund that holds assets, ETN is viewed as unprotected bank debt securities and are largely related to the market index. However, the BTC community has noted that the latest increase will lead to a rise in institutional investment in both Bitcoin and other cryptocurrency sectors.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
