Last January, the U.S. government said exchange-traded funds, or ETFs, could start investing in bitcoin. Someone was so excited that they hacked the United States Securities and Exchange Commission’s website to break the news just a little early. Although a group of people – mainly the ever-sad Grayscale Trust – left their assets after the market rules have changed, a different A bunch of people (or maybe even the same people looking for a better deal on fees) moved their money to one of nine other Bitcoin ETFs that popped up last month.
The inflows are pouring in, with Bloomberg reporting that $8 billion in investment is being pumped into offerings from companies like BlackRock and Fidelity. Today, bitcoin hit $47,000, its highest level in two years. And some think it could go higher.
Bitcoin Rise and Halving
Another factor driving bitcoin prices higher could be the “halving,” an event every four years in which computers that belong to me cryptocurrency will receive half the reward for efforts to restrict supply. Although technically the end point is the same (a Limit of 21 million bitcoins), it is the kind of narrative event that arouses interest and speculation on a financial subject without anchoring in the real world. It won’t hit $100,000, but David Jagielski of the Motley Fool thinks it has a good chance of hitting $50,000.
“Based on a price of $43,000, Bitcoin would only need an increase of just over 16% for its valuation to exceed $50,000, a level it has not reached since 2021.” he writes. “If it increases by around 20%, then it could reach around $52,000 after 150 days, which would happen in September.”