- SEC approves new Bitcoin and Ethereum combo ETFs, signaling increased institutional acceptance of cryptocurrencies.
- Market volatility noted with Bitcoin hitting $108,000 before falling, amid significant purchases by corporations like MicroStrategy.
The U.S. SEC has approved two new ETFs that will track both Bitcoin and Ethereum. This decision marks a continuation of the SEC’s trend towards embracing digital assets, following the earlier approval of several Bitcoin-only ETFs in early 2024.
The approval of these dual cryptocurrency ETFs, proposed by Hashdex and Franklin Templeton, signifies a growing institutional acceptance of crypto assets as legitimate financial instruments.
These new ETFs, described as “substantially similar” to previous spot-based Bitcoin and Ethereum ETFs, could potentially catalyze further interest from major financial entities. This anticipation was highlighted by Nate Geraci in his X post on December 20, speculating on whether firms like BlackRock might follow suit.
Bloomberg’s Eric Balchunas responded, projecting that these ETFs are likely to launch in January, setting the stage for a potentially vibrant start to the new year in crypto markets.
Amid this regulatory milestone, the crypto market experienced significant volatility. Bitcoin, for example, surged to a record high of over $108,000 before retracting sharply to as low as $95,587.68.
This volatility has been compounded by substantial purchases from corporations like MicroStrategy, which recently invested an additional $1.5 billion in Bitcoin. Despite these large inflows, Bitcoin’s price trajectory has puzzled many, given the apparent disconnect between high demand and falling prices.
Addressing these markets, Samson Mow, a prominent Bitcoin advocate and CEO at JAN3, expressed his views on the unusual market behavior.
On social media, Mow described the current price movements as irrational, considering the limited supply of Bitcoin remaining. He emphasized the likelihood of a “supply shock,” urging the community to remain confident in the long-term value of Bitcoin.
Furthermore, the crypto market saw significant activity with Dogecoin as well. A notable transaction recorded by Whale Alert involved the transfer of 200 million Dogecoins, worth roughly $59.9 million, to the cryptocurrency exchange Binance.
This could indicate various strategies, including potential sales or preparations for liquidity provision. Dogecoin’s price has been particularly responsive, dipping below critical support levels before making a modest recovery, reflecting the ongoing turbulence in the cryptocurrency markets.
Overall, these developments reflect a complex interplay of regulatory progress, corporate adoption, market volatility, and strategic transactions that continue to shape the landscape of the cryptocurrency sector.
The current price of Bitcoin (BTC) is approximately $98,338, reflecting a daily increase of 3.79%. Despite recent volatility, Bitcoin has shown a year-to-date growth of 132.64%, underscoring its continued appeal to investors. This rise follows a recent all-time high of $108,364, after which Bitcoin experienced a pullback.
Bitcoin’s market capitalization is $1.95 trillion, with a 24-hour trading volume of $53.29 billion, indicating market activity. The recent rally has been influenced by institutional interest, including Bitcoin ETFs, although regulatory comments and macroeconomic factors have created short-term price fluctuations.
Currently, resistance is observed near $100,000, while support levels around $95,000 are critical to sustain its upward momentum.
