On Valentine's Day, investors express their love for cryptocurrencies in general by trading – often significantly – the price of digital coins and tokens as well as the securities of companies associated with digital money. did.
Major altcoins Ethereum (Ethereum 6.82%) The stock benefited, rising 5.4% in late afternoon trading.The profits were impressive, but not for crypto mining equipment experts. canaan (can 31.79%), its American Depositary Receipts (ADRs) ended the day up nearly 32%.Behind Canaan, the miner terra wolf (Wolf 12.33%) It rose more than 12%.
bitcoin effect
Bitcoin (BTC 5.41%) was the world's first cryptocurrency and remains the most influential cryptocurrency a decade and a half after its introduction. When it works, it often tends to fall in line with other coins, tokens, and even crypto mining companies.
Fortunately for holders of these assets, Bitcoin was very visible on Wednesday. After dipping a bit on Tuesday, it jumped back above the $50,000 mark and settled comfortably below $52,000 later in the day. The flow of investments into spot Bitcoin exchange-traded funds (ETFs) shows no signs of slowing down, and what's good for these securities is also great for their underlying assets.
Other factors are also keeping the buying fire burning. On Wednesday morning, online crypto news outlet Coindesk.com reported that European Union (EU) officials have drafted and distributed a document regarding the upcoming EU Financial Services Committee meeting. The event, scheduled to be held in April, will focus on cryptocurrency regulation in 27 economies.
According to Coindesk, the document summarizes the key points of discussion at the meeting. These include topics such as licensing and enforcement of a series of recently enacted crypto asset market laws. The most interesting thing is that there is mention of a digital euro. Perhaps this will become the “official” EU-wide cryptocurrency.
spot of optimism
The EU document is the latest in a series of signs that top regulators around the world are not only taking cryptocurrencies seriously, but also accepting that they are part of their countries' economic structures. It's just a thing. As these assets become more accepted and established, markets like Europe are likely to adopt the latest crypto innovations as well.
A question arises here. Will spot virtual currency ETFs start to be developed overseas?
I think there is a good chance of that happening. While there is curiosity and hunger for cryptocurrencies around the world, the software and technical know-how required to simply trade coins and tokens remains a major hurdle. Spot ETFs are securities that can be easily traded on exchanges, so this requirement is suddenly removed. We are just at the beginning of the spot crypto ETF revolution.
Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
