Bitcoin surpasses $47,000 with approval of spot ETF — Ethereum and Grayscale’s GBTC rise | CoinDesk JAPAN

• After a Bitcoin spot ETF received regulatory approval, Bitcoin, which had been volatile, has surpassed $47,000.
• Ethereum rose 11% to a 20-month high as ETF-related speculation turned to the second-largest stock by market capitalization.
• 21Shares co-founder Ophelia Snyder said in an interview that it will take months for the broader ETF impact to become clear.

Bitcoin (BTC) and the entire crypto market soared on the 10th after US regulators approved a Bitcoin ETF. This approval is a landmark decision for the digital asset industry and could dramatically expand Bitcoin’s investor base.

Bitcoin is trading at around $47,500 (approximately 6,815,000 yen, equivalent to 145 yen to the dollar) at the time of writing this article. That’s up from below $46,000 before the news was announced. With the US Ethereum ETF application attracting attention, Ethereum (ETH), the second-largest stock by market capitalization, rose 11% to exceed $2,500 (approximately 362,500 yen) for the first time in 20 months.

Michael Silberberg, head of investor relations at crypto hedge fund Alt Tab Capital, said, “Funds from a new class of institutional crypto buyers are entering the market. “We expect that the inflow will lead to a frothy price accumulation.”

GBTC soars, crypto assets related stocks remain flat

The price of Grayscale Bitcoin Trust (GBTC), the largest closed-end Bitcoin fund currently allowed for conversion into an ETF, has soared to $40 and is expected to rise in 2021, according to data from TradingView. This was the highest price since December 2018.

Shares of Coinbase, a major U.S. cryptocurrency exchange that provides custody services to most Bitcoin ETF issuers, were flat at around $151. Bitcoin mining companies Marathon Digital and Riot Platforms were also flat.

Since BlackRock, the world’s largest asset management company, submitted documents to create a physical ETF in June last year, other companies have followed suit. Expectations for the first Bitcoin ETF are a tailwind for the crypto market.

Spot ETFs are already believed to outperform publicly traded futures ETFs, and bulls are betting that this will attract significant inflows into Bitcoin.

What is the impact on price?

Attempts to list a Bitcoin spot ETF in the United States have continued to fail for 10 years, but BlackRock’s track record of successful applications and asset management company Grayscale’s Most market participants had been expecting regulatory approval, given the company’s successful lawsuit against the U.S. Securities and Exchange Commission (SEC).

From now on, attention will turn to how much demand the Bitcoin spot ETF will attract when it starts trading.

Ophelia Snyder, co-founder of crypto asset management firm 21Shares, said in an interview with CoinDesk that the ETF could trade as early as the 11th, but the broader impact will be said he expects it to appear within the next few months.

Bartosz Lipiński, CEO of cryptocurrency trading platform Cube.Exchange, pointed out that Ethereum has outperformed Bitcoin amid this news, and expressed the view that altcoins will also benefit. .

“It’s been a while since the second-largest digital asset moved 10% in a single day, so that’s pretty significant,” Lipinski said. “Looking forward, as these 11 ETFs begin to gobble up large amounts of supply, it stands to reason that Bitcoin will eventually resume its rally as supply becomes even more scarce.” “With that potential, it’s no surprise that other coins will start to fill the hole left.”

Lipinski further said, “Ethereum, Solana (SOL), Polygon (MATIC) and others could greatly benefit from this desire to find further opportunities elsewhere in the digital asset ecosystem.” .

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original: Bitcoin Tops $47K, Ether and Grayscale’s GBTC Jump After SEC Approves Spot Bitcoin ETFs