Bitcoin's recent rally came after the Securities and Exchange Commission, in a 3-2 vote, allowed 11 companies to create exchange-traded funds based on Bitcoin. The approval of ETFs, which can be traded like stocks, was a major step toward broader acceptance of Bitcoin, but Chairman Gary Gensler remained cautious in announcing the vote. “Bitcoin is a primarily speculative and volatile asset that can also be used for illicit purposes,” including activities such as ransomware, money laundering, sanctions evasion, and terrorist financing. ”
The day after the SEC's January 10 announcement, the price of Bitcoin rose to $47,000 per coin, the Washington Post reported.
Still, the SEC's ruling marks a major step toward bringing Bitcoin, once considered a speculative fad, into line with other asset classes.
Even before the SEC ruling, Bitcoin had been on an upward trend since the summer. However, like other crypto assets, the price of Bitcoin crashed in 2022, causing a “crypto winter” that shook several companies in the industry and triggered a series of events such as: The successful criminal prosecution of some of the biggest names in the crypto world, including Sam Bankman Freed, the founder of the cryptocurrency exchange FTX, and his rival, Changpeng Chao of Binance.
Bitcoin wasn't the only asset rising on Tuesday. At the other end of the spectrum, gold, typically seen as a place to store money during times of economic uncertainty, soared to a record $2,145.40 an ounce. According to Reuters, gold prices hit a record high of $2,135.40 per ounce on December 4th.
Julian Mark and Aaron Gregg contributed to this report.
