The price of the flagship cryptocurrency Bitcoin ($BTC) has reached a 16-month high above the $35,000 mark after optimism on the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States grew, with options data showing there’s more room for BTC to grow.
According to market data, BTC is up over 20.5% for the week and is currently trading at $34,300 after a slight correction. Nevertheless, the flagship cryptocurrency is still up over 100% so far this year as optimism grows.
The surge started after Bloomberg exchange-traded fund (ETF) Analyst Eric Balchunas noted that BlackRock’s proposed iShares spot Bitcoin ETF was listed on the Depository Trust & Clearing Corporation (DTCC), which provides post-trading, settlement, custody, and information services for Nasdaq.
The move, according to Balchunas, is part of the process of launching an ETF, and details the fund would trade under the IBTC ticker on the Nasdaq. The analyst noted that the listing is “part of the process of bringing ETF to market,” and that it’s “notably BlackRock is leading charge on these logistics” that tend to happen ahead of launch.
Per his words it’s hard “not to view this as them getting signal that approval is certain/imminent.”
Numerous other cryptocurrencies have surged along with BTC, with Ethereum’s 24-hour performance being above 9%, and Solana moving up 7% over the same period, being outperformed by Cardano’s 7.7% rise.
The sharp price rises came after the 10-year US Treasury yield fell sharply after reaching 5% for the first time since 2007. According to CoinDesk, its Bitcoin Trend Indicator, which tracks the movement and strength of Bitcoin’s price, is now showing a “significant uptrend,” as BTC consolidates above $30,000.
In a market report Alex Thorn, research head at digital asset investment firm Galaxy, said that option dealers had to hedge their positions by buying bitcoin on the spot market, which could further boost the cryptocurrency’s rally.
Thorn added that at the $32,500 peak “ almost $20 million of BTC will need to be purchased by options dealers for every 1% move up to stay delta neutral.”
Featured image via Unsplash.
