For the first time in its history, Bitcoin has broken through the £1000 milestone. The rally, which comes ahead of the upcoming SEC deadline to approve or reject the Winklevoss brothers’ proposed Bitcoin ETF (exchange traded fund), has been one of the most sustained seen to date. A Bitcoin ETF (there are several in the pipeline) is speculated to inject over $500m into Bitcoin’s “market cap” over the coming months, and the bull-run currently being witnessed would suggest that investors are predicting approval from the SEC. Continued capital controls in countries such as China and India are also possible contributors to the recent price rally, along with further mainstream media attention from the likes of Bloomberg and CNN.
If the SEC were to reject the Winkelvoss ETF, it is likely that price of Bitcoin would fall below the $1000 mark for the first time in several weeks. However, with so many other Bitcoin ETF filings currently under review, it is arguably only a matter of time until one receives full SEC approval. Should the current Bitcoin ETF proposal be rejected, it may well be an opportunity for those not yet invested to get some skin in the game.
The SEC will make their judgement on the Winklevoss Bitcoin ETF on March 11th.