Bitcoin, Over $31K, Hit Its Highest Level This Year

The price of bitcoin (USDBTC) shot up to its highest level this year, and is up nearly 90%, as investors return to the largest cryptocurrency by market cap after a tumultuous 13 months for crypto markets that led to multiple bankruptcies and exchange failures. .

Although less than half its November 2021 all-time high of around $68,000, Bitcoin's price broke above $31,000 for the first time since April, when it briefly hit $31,005. Prior to that, the cryptocurrency had not traded above $30,000 since June 2022, before the tumult that eventually led to the FTX collapse in November.

What is driving Bitcoin prices?

Bitcoin has seen renewed interest after asset management giant BlackRock (BLACK) filed an application for a spot bitcoin ETF last week. BlackRock's filing said that its iShares Bitcoin Trust would not issue new shares without them being backed 1:1 with BTC.

Following suit, other traditional financial institutions such as Invesco (IVZ) and Tree of Wisdom (weight), followed by the suite refining previously rejected requests.

Investors are now hopeful that National Stock Market Commission (SEC) for these new ETFs could lead to an increase in digital asset trading volumes. So far, the regulator has rejected applications for spot bitcoin ETFs.

However, in a surprise move, the SEC granted approval for a 2X leveraged bitcoin fund. a 2X Leveraged ETFs technically it would be considered riskier than a spot ETF. The Volatility Shares 2X Bitcoin Strategy ETF will trade under the ticker BITX starting June 27.

The cryptocurrency sector has been rocked by the collapse of the FTX exchange and a difficult regulatory environment this year. Cameron Winklevoss, the founder of the Gemini and Genesis in trouble crypto firms, said the “window” to buy bitcoin before the ETF “floodgates” open is “closing fast.”