Bitcoin reaches all-time high after UK greenlights crypto asset

by | Mar 11, 2024

On Monday, Bitcoin surged to a record high exceeding $72,000, driven by a United Kingdom financial regulator's approval of a cryptocurrency-backed investment vehicle.

This milestone was reached as Bitcoin rose to $72,166 during early trading, shortly after surpassing its previous high of nearly $69,000 recorded in November 2021.

Following its recent milestone, Bitcoin experienced a 10% decline before rebounding to its current levels.

The Financial Conduct Authority, responsible for regulating financial activities in the UK, announced that it will not oppose the formation of a UK-listed market segment for crypto asset-backed Exchange Traded Notes (cETNs).

These forthcoming financial instruments enable traders to purchase and sell assets whose prices move in tandem with a specific cryptocurrency's fluctuations.

The publicly listed assets offer traders the opportunity to invest in cryptocurrency without the complexities and technical hurdles of acquiring actual crypto coins.

Despite approving cETNs, the Financial Conduct Authority emphasized that these products will not be accessible to retail investors. Additionally, the authority cautioned traders about the inherent risks associated with cryptocurrency investments.

The decision mirrors a similar move made by the U.S. Securities and Exchange Commission in January, when it greenlit Bitcoin Exchange-Traded Funds (Bitcoin ETFs).

Similarly, a Bitcoin ETF enables investors to invest in an asset that mirrors the price fluctuations of Bitcoin without directly investing in the cryptocurrency itself.

Following the SEC's approval of Bitcoin ETFs, the price of Bitcoin surged upward, fueled by a wave of fresh investment.

Shortly after the SEC's approval, a variety of Bitcoin ETFs became accessible, including offerings from established firms like Fidelity and Franklin Templeton.

The introduction of new crypto alternatives prompted billions of dollars in investment within a matter of weeks, as Bryan Armour, the director of passive strategies research at financial firm Morningstar, revealed to ABC News. According to Armour, the nine top Bitcoin ETFs collectively garnered $10 billion in the initial seven weeks following their launch.

Since the approval of Bitcoin ETFs on January 10, the price of Bitcoin has surged by 54%.

Source: ABC News



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