After briefly crossing the $49,000 level, the price of Bitcoin (BTC-USD) has cooled down to $46,165 at the time of writing. Nonetheless, the world’s largest cryptocurrency is still tracking nearly 4.6% higher so far this month.
Major crypto-focused stocks, including crypto miners, Coinbase (NASDAQ:COIN), and MicroStrategy (NASDAQ:MSTR), are also ticking higher today after the U.S. Securities and Exchange Commission’s approval of nearly a dozen Bitcoin ETFs. However, Gary Gensler, the SEC Chair, cautioned that the approvals should not be construed as the regulator’s “Willingness to approve listing standards for crypto asset securities.”
Interestingly, multiple BTC ETFs, including ARK 21Shares Bitcoin ETF (ARKB), Invesco Galaxy Bitcoin ETF (BTCO), and VanEck Bitcoin Trust (HODL) trended lower on debut. The SEC’s approval has opened the gates for a variety of investors to gain exposure to Bitcoin.
What will be interesting to see is how this will change fund flows. The Grayscale Bitcoin Trust (GBTC) has been a way of gaining exposure to BTC for a while now. GBTC is up nearly 310% over the past year and has an AUM of just over $28 billion. Similarly, investors have long looked at crypto mining stocks and companies hoarding Bitcoins on their balance sheets as a means of riding the crypto boom. Now, they can directly cycle out of these names into the newly minted ETFs.
The rally in the crypto space could cautiously continue to gather steam. ARK’s Cathie Wood already sees Bitcoin hitting the $1.5 million mark by the end of this decade in her Bull case. Meanwhile, immediate support for BTC can be expected at $45,000.
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