ISLAMABAD
The cryptocurrency market turned bullish on Thursday following the US regulators granting approval for the introduction of Bitcoin exchange-traded funds (ETFs), with the market capitalization jumping 7.2 percent to reach $1.9 trillion.
As of 1310 hours GMT, the price of Bitcoin, the world’s oldest and most valued cryptocurrency, surged to $47,360 with a gain of 6.1 percent in the last 24 hours. The market capitalization of the biggest crypto has reached $928 billion with this increase. Bitcoin has been 9.1 percent up in the past seven days.
The US Securities and Exchange Commission’s approval marks a significant shift after years of delays and outright rejections of multiple attempts to launch spot bitcoin ETFs. A Bitcoin ETF represents a financial instrument designed to track the price movements of Bitcoin, operating similarly to traditional exchange-traded funds traded on stock exchanges.
This financial product allows investors to gain exposure to Bitcoin’s price without directly owning the digital currency. Instead of acquiring and holding Bitcoin, investors can purchase shares or units of the ETF through their brokerage accounts, with the ETF assuming custody of the Bitcoin on behalf of its investors.
The value of a Bitcoin ETF is intrinsically tied to the underlying price of Bitcoin. As Bitcoin’s price fluctuates, the value of the ETF’s shares or units also adjusts accordingly, offering investors the opportunity to speculate on price movements and potentially profit from them.
On the other hand, Ether (ETH), the world’s second-largest cryptocurrency by market capitalization, increased by 12 percent to reach $2,644. With this increase in price, the market capitalization of ETH has reached $318.2 billion. ETH has gained 18.1 percent of its value during the last seven days.
Similarly, Binance Coin (BNB) price increased by 7.3 percent to reach $316. The market capitalization of BNB has reached $48.7 billion with this increase. BNB has shed 0.6 percent of its value during the last seven days.
Following suit, Solana price increased by 13.2 percent to reach $106. With this increase in price, its market capitalization has reached $46 billion. SOL has gained 6.7 percent of its value during the last seven days.
Similarly, the price of Ripple (XRP) increased by 10.9 percent to reach $0.618. The market capitalization of XRP stands at $33.5 billion with this increase. XRP has gained 6.6 percent of its value during the last seven days.
