ETF hopes reignite as Bitcoin breaks new high of $4,900

Summary: SEC's approval of Bitcoin ETF rekindles hopes, boosting Bitcoin to break through $4,900 today, reaching a record high. US media reported that Dalia Blass will serve as the director of the SEC's investment management department. One of the responsibilities of this department is ETF. Blass was a lawyer at the law firm Ropes & Gray, which represented the Winklevoss brothers, the founders of Bitcoin ETF, in the lawsuit over Bitcoin ETF.

The situation in North Korea and the US debt ceiling have increased the risk aversion in the market. In addition, the SEC's approval of the Bitcoin ETF has rekindled hopes, and Bitcoin has been boosted, breaking through $4,900 today to a record high.

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The six largest virtual currencies rose collectively today. Compared with the level before the fork at the end of July, Bitcoin has risen by 165%.

US media reported that Dalia Blass will serve as the director of the SEC's investment management department. One of the responsibilities of this department is ETFs. Blass was a lawyer at the law firm Ropes & Gray, which represented the Winklevoss brothers, the founders of Bitcoin ETF, in the lawsuit over Bitcoin ETF. This makes the market expect that Bitcoin ETF may come earlier than expected.

On March 11, the SEC rejected the rule adjustment application of Winklevoss Bitcoin Trust to be listed on the Bats BZX exchange, which made the market nervous about whether the first exchange-traded fund (ETF) with Bitcoin as the underlying asset could be successfully listed. After the news was announced, the price of Bitcoin plummeted by 19%, once falling below the psychological mark of $1,000 to a one-month low.

However, after the SEC rejected his Bitcoin ETF listing request, Tyler Winklevoss, founder of Winklevoss Bitcoin Trust, said he was still optimistic about the prospects of Bitcoin ETF and would continue to cooperate with the SEC. On February 14, he met with SEC officials and reached a consensus that the security of all investors and the regulation of any market are important.

Traders hope that the SEC's move will at least leave a window for the listing of a Bitcoin ETF.

"The news that the SEC reaffirmed the Bitcoin ETF has definitely excited speculators, but it remains to be seen whether the SEC will change its decision. Therefore, the rise in Bitcoin prices over the past 24 hours is only temporary," said Thomas Glucksmann, market director at cryptocurrency trading platform Gatecoin.

Wall Street Journal previously mentioned that the market expects that once the Bitcoin ETF is announced, it will attract at least US$300 million in funds, because the ETF will expand the interest of ordinary investors in Bitcoin without having to buy and sell real Bitcoin.