Bitcoin's Price Moves Near $47,000 as People Await ETF Approval

Bitcoin (BTC) is hanging around $46,000 as people eagerly wait for the go-ahead on spot bitcoin exchange-traded funds (ETFs). These ETFs could make it easier for regular folks to get into the world's biggest cryptocurrency.

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On Monday, Bitcoin went over $47,000 for the first time in almost two years, hitting $47,200. However, it dipped below $47,000 on Tuesday. Still, it's up about 3% in the last 24 hours, trading around $46,500 as of 8 am ET.

Bitcoin had an amazing year in 2023, going up more than 150%. It's continued to do well in 2024, up about 10% so far, beating major stock indexes. The Securities and Exchange Commission (SEC) is supposed to decide this week on 14 different money managers launching their spot bitcoin ETFs.

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Three of these groups have told Yahoo Finance they expect the SEC to say yes on Wednesday, and trading might start on Thursday. Two of those said they think the SEC will decide after the market closes on Wednesday.

If these ETFs get approved, regular people could invest in bitcoin without actually owning any, treating it like a stock. Approvals might also make bitcoin more accepted, with people considering it for their 401(k)s, IRAs, and pension plans.

Big names on Wall Street, like BlackRock and Franklin Templeton, and some from the crypto world have applied. Even JPMorgan Chase and Goldman Sachs are helping some of these groups make and sell shares of their new funds.

Riot Platforms CEO Jason Les thinks a bitcoin ETF could bring in a lot of money and help the whole industry. Gautam Chhugani, from Alliance Bernstein, estimates that these financial products could attract $10 billion or more in investments through the end of 2024 and "hundreds of billions of dollars" over two years.

This new money might push bitcoin's price even higher. While it's not back to its all-time high of $68,789 from 2021, people are hopeful that ETFs and clearer rules will make the price go up.

SEC Chair Gary Gensler has warned that investing in crypto is risky, and these assets can be volatile. Even with the risks, investors are feeling good about the industry getting more accepted and having clearer rules in 2024. People are also excited about bitcoin's "halving" in April, where the amount of new bitcoin created each day gets cut in half. And if the Federal Reserve lowers interest rates in 2024, that could make more people want bitcoin. Some experts think bitcoin could go up to $150,000 by 2025.

Also Read: Excitement Grows as Decision Nears for Bitcoin ETF Approval