Some powerful news has struck the bitcoin market. The currency is trading for well over $10,000. In fact, it’s trading for roughly $10,700. The currency has risen by almost $1,000 in the last 24 hours.
Bitcoin Spikes Following a Messy Week
This last week has been hard for the granddaddy of cryptocurrency (and its enthusiasts). It ultimately fell by more than $600 in less than 30 minutes early in the week and nobody could really explain why. Since then, it hovered in the mid-$9,000 range for several days and has now jumped back into more familiar territory. The currency has been enjoying bullish behavior since April, but it has fallen here and there for unexplained reasons. Now that the currency is back up, people can’t help but rejoice, but it’s unclear if the currency will stay here, continue to move up, or ultimately fall back down again.
Naturally, traders are hoping the currency continues its current streak. The fact that it could spike roughly $1,000 in just 24 hours is a solid position for bitcoin, and after all, the currency has been proving itself since the end of the first quarter.
The news has emerged that the VanEck Solid X Bitcoin Trust could start selling shares to institutional players as early as next week. This is the first exchange-traded fund (ETF) to submit a proposal to the Securities and Exchange Commission (SEC), and thus far, the attention it’s been getting surpasses that of all its competitors. VanEck initially tried to submit the proposal for the ETF in March of 2017, a time when bitcoin’s price was really moving up the financial ladder. Ultimately, the ETF was rejected and turned down by the SEC, and it took the company two more tries before the agency even began considering what it had to offer.
From there, a period of public comment was given to VanEck so that the SEC could understand if it was in the world’s best interest to allow a bitcoin ETF to enter the market. The idea of a fund backed by physical bitcoin was unique… Perhaps a little too unique, and the SEC didn’t know how to approach it. Following the commentary period, the SEC sought to gather these comments and make an official decision, but this was delayed time and time again. Now, it appears the final decision is upon VanEck, and with the sudden price rise, maybe things are looking down on the company in a favorable way.
How Will Traders React to the ETF?
Jan van Eck, chief executive officer of VanEck, said in a statement:
Institutional demand for bitcoin exposure is uncertain because institutional quality vehicles simply have not, to this point, been readily available. We’re introducing a solution for institutions that fits within their operational processes and the currency regulatory framework.