Bitcoin has reached a new all-time high, breaking the $71,000 mark, driven by significant institutional investments and the US Securities and Exchange Commission’s (SEC) earlier approval of the first spot exchange-traded funds (ETFs) for bitcoin. Major firms, including BlackRock and Fidelity, have played a pivotal role in this surge through substantial investments in the cryptocurrency.

In response to this significant development, the London Stock Exchange announced its plans to start accepting applications for bitcoin exchange-traded notes (ETNs). With the bitcoin ‘halving’ event on the horizon, which will reduce mining rewards by half, expectations are set for further increases in bitcoin’s price. Ed Hindi of Tyr Capital predicts that the price could surge to $100,000 by 2024, propelled by strong investment flows into US spot Bitcoin ETFs.

The market’s enthusiasm is tempered by caution from experts who highlight the cryptocurrency market’s volatility, noting that significant price corrections often follow major rallies.

In a related development, BlackRock’s iShares Bitcoin Trust (IBIT) has reached over $10 billion in assets in record time, benefiting from the increasing value of bitcoin and investor inflows. This milestone was achieved in just two months following its launch, marking a significant success in the cryptocurrency ETF domain. The 10 spot bitcoin ETFs approved by the SEC have collectively attracted approximately $7 billion in net inflows, indicating a heightened investor interest in cryptocurrency through more accessible and cost-effective means.

The SEC’s approval has clearly had a substantial impact, boosting confidence amongst a wide range of investors and contributing to the bitcoin market’s growth. As the cryptocurrency landscape continues to evolve, the focus remains on how bitcoin and other digital currencies will perform in the face of potential market fluctuations and regulatory developments.