Bitcoin: Reason for Soaring to $106K

What to Know:

• Bitcoin briefly exceeded $106,000 amid news of the US government shutdown ending.
• The SEC’s backlog of ETF filings could soon be cleared, potentially opening doors for new crypto investment products.
• An XRP spot ETF might launch soon, signaling further diversification in crypto investment options.

The price of Bitcoin experienced a notable surge, briefly exceeding $106,000. This uptick occurred in tandem with the US Senate’s vote to end the government shutdown, which had been ongoing for 40 days. The resolution of this political impasse could have broader implications for the crypto market, particularly regarding the approval of pending ETF applications.

The US government shutdown significantly impacted the SEC’s operations, causing a backlog in reviewing and approving various filings, including those for crypto ETFs. With the government back in full operation, the SEC is expected to address this backlog, potentially greenlighting several spot Bitcoin ETFs. This development could channel significant institutional investment into Bitcoin.

Nate Geraci suggests the end of the shutdown could lead to a surge in spot crypto ETF approvals. He also anticipates a potential launch of an XRP spot ETF. Such a move would diversify investment options for those interested in cryptocurrencies beyond Bitcoin and Ethereum.

The approval of spot crypto ETFs is seen as a pivotal moment for the industry, offering a regulated and accessible avenue for traditional investors to gain exposure to digital assets. This could lead to increased market participation, further legitimizing cryptocurrencies like Bitcoin and XRP as viable investment assets. The market anticipates further regulatory clarity as the SEC resumes normal operations.

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Source: Original article