Bitcoin Skyrockets as UK Watchdog Embraces Crypto Trading Products
The cryptocurrency world buzzed with excitement as Bitcoin smashed records, soaring beyond $71,000 on Monday. This remarkable surge shows no sign of stopping. Moreover, Britain’s financial regulator, the Financial Conduct Authority (FCA), became the latest to allow digital asset trading products. Specifically, the FCA will now permit recognized investment exchanges to launch crypto-backed exchange-traded notes (ETNs).
Bitcoin, the most valuable cryptocurrency, rose as much as 4.8% to an all-time high of $71,677 in European trading. So far this year, Bitcoin has gained a staggering 70%. A flood of cash pouring into new spot bitcoin exchange-traded funds helped drive this rally. Additionally, hopes that the Federal Reserve will cut interest rates soon further boosted Bitcoin.
Data from LSEG shows inflows to the 10 largest U.S. spot bitcoin ETFs slowed to $2 billion in the week ending March 8 but remained substantial. Nick Cawley, a strategist at DailyFX, commented, “Bitcoin kicked off the week with a surge, pulling the rest of the cryptocurrency market higher.”
Ahead lies the “halving” event in April when the release of new bitcoin supply and mining rewards halves. Consequently, the limited supply of 21 million Bitcoin tokens will tighten further, likely supporting higher prices.
The FCA’s move allowing crypto ETNs, which track underlying digital assets’ performance, also contributed to the bullish sentiment. While warning ETNs could harm retail investors, professional investors like authorized firms show rising demand.
Asset managers now hold record large bullish bitcoin futures positions, per U.S. Commodity Futures Trading Commission data. This underscores the growing institutional embrace of cryptocurrencies.
Ether, the second-largest cryptocurrency, also rose 2.1% toward $4,000 – its highest in two years. Speculation mounts that U.S. regulators may approve spot ether ETF listings this year, driving Ether’s 75% price surge in 2024.
As cryptocurrencies captivate investors worldwide, the stage seems set for broader mainstream adoption and integration into traditional finance. The crypto revolution marches on.
