Bitcoin skyrockets as big investors tipped to pounce on ETFs

Bitcoin has seen its value skyrocket in the past 24 hours over a potentially game-changing move for cryptocurrencies.

Bitcoin has seen its value skyrocket in the past 24 hours over a potentially game-changing move for cryptocurrencies.

As of 12.20pm on Tuesday, the digital currency is up a massive 11.65 per cent, representing a 68 per cent rise since this time last year. A single coin is now worth $52,937.

Other popular coins followed suit. Ether rose by 5.84 per cent, while Solana rose by 6.88 per cent and Dogecoin rose by 8.34 per cent.

The excitement is being fuelled by the possibility of a bitcoin exchange-traded fund by major investment firms.

Bitcoin is seeing a surge in price. Picture: AFP

Reuters reports the anticipation of a bitcoin exchange-traded fund (ETF) has grown after reports this month that the U.S. Securities and Exchange Commission won’t appeal a ruling it was wrong to reject an application from Grayscale Investments.

Crypto investors are excited about this because an ETF would allow a wider set of investors to buy exposure to the coins without directly trading it.

“The market is doing its best to front-run the approval of a physical BTC ETF, with consensus being that it will happen some time in the next three months, if not sooner,” said Matthew Dibb, CIO at crypto asset manager Astronaut Capital.

BlackRock (BLK. N), VanEck, WisdomTree (WT. N), Fidelity, Bitwise and Invesco (IVZ. N) all have pending bitcoin ETF applications.

ASX rises as Wall St wobbly

The Australian sharemarket rose at midday on Tuesday — despite wild movements in bonds.

The benchmark S&P/ASX 200 index rose 0.3 per cent, or 23.2 points to 6867.3, buoyed by gains in the financials and energy sectors.

Wall Street stocks were mixed at the end of Monday’s session as markets monitored US Treasury yields and awaited key earnings and economic data later in the week.

Major indices opened the day firmly lower after the yield on the 10-year US Treasury note topped five percent for the first time in 16 years.

The ASX rose on Tuesday. Picture: NCA NewsWire / Christian Gilles

But as yields moved lower later in the day, large technology companies gave markets a boost, with Google parent Alphabet, Amazon and Microsoft shares all rising ahead of earnings later in the week.

The tech-centered Nasdaq Composite Index finished up 0.3 percent at 13,018.33. The Dow Jones Industrial Average dropped 0.6 percent to 32,936.41, while the broad-based S&P 500 shed 0.2 percent to 4,217.04.

The rise in bond yields has worsened worries that Federal Reserve interest rates will stay higher for longer, denting the growth outlook.

— with AFP