Bitcoin Surges Back Above $70,000 as Halving Approaches, Bitcoin ETN Looming

The world’s largest cryptocurrency has reclaimed the $70,000 mark, fueled by mounting anticipation surrounding the upcoming halving event, scheduled to occur in less than 25 days. 

The digital asset’s price surge comes after a week of volatility and a brief downturn, solidifying its position as a resilient and sought-after investment.

According to CoinMarketCap data, Bitcoin is trading at $70,361, up 4.4% in the last 24 hours and 3.49% over the past seven days. 

This remarkable rally has brought the cryptocurrency tantalizingly close to its all-time high of $73,737, set on March 14th, before a series of events, including ETF outflows, cryptocurrency exchange flash crashes, and concerns over inflation, triggered a temporary price slide.

The imminent halving event occurs approximately every four years, reducing the reward for mining new Bitcoin blocks by half. This undoubtedly contributes to the current bullish sentiment. 

Speculators anticipate that the reduced supply of newly minted Bitcoin could increase the price as demand continues to outpace the dwindling supply.

Bullish Sentiment and Institutional Adoption

While Bitcoin’s return above $70,000 is a cause for celebration among investors, experts advise caution, particularly when considering the cryptocurrency’s performance following previous halving events. 

John O’Loghlen, Managing Director of Coinbase Asia-Pacific, cautioned against relying solely on past performance to indicate future success.

“As you read the fine print or Safe Harbor language on any material coming from an institutional source, the first language seen [is that] past performance is not an indicator for future success or performance,” O’Loghlen stated, emphasizing the need for a measured approach.

Nonetheless, the overall sentiment surrounding Bitcoin remains bullish, buoyed by the U.S. Securities and Exchange Commission (SEC) ‘s recent approval of spot Bitcoin ETFs in January. 

This development has undoubtedly contributed to the growing institutional adoption and mainstream acceptance of cryptocurrencies.

London Stock Exchange to Launch Bitcoin & Ethereum ETN Market

According to a recent market notice issued by the London Stock Exchange, the exchange is gearing up to introduce exchange-traded notes (ETNs) for Bitcoin (BTC) and Ethereum (ETH) on May 28th, 2024. 

This move follows the exchange’s earlier announcement that it would begin accepting applications for Bitcoin and Ethereum ETNs starting April 8th. However, these applications are contingent upon approval by the Financial Conduct Authority (FCA) of the United Kingdom.

The decision to introduce Crypto ETNs comes amidst a growing trend in the digital asset market, particularly with the recent approval of Spot Bitcoin ETFs in the United States by the Securities and Exchange Commission (SEC). 

These ETFs have gained significant traction, attracting interest from major asset management firms such as BlackRock and Fidelity within just 50 days of trading.

The London Stock Exchange’s move to explore digital asset exchange-traded markets shows the increasing acceptance and adoption of cryptocurrencies within traditional financial systems. 

By offering ETNs for Bitcoin and Ethereum, the exchange aims to provide UK-based investors with an avenue to trade securities that track the performance of these digital assets.

According to the market notice, applications for Crypto ETNs will be accepted until April 15th, with a launch date set for May 28th, 2024. This launch date is strategically chosen to ensure the maximum participation of issuers in the market on the first day of trading.

The broader cryptocurrency market has followed Bitcoin’s lead, with other major digital assets experiencing significant gains. Ethereum, the second-largest cryptocurrency by market capitalization, has jumped nearly 9% to a current price of $3,630, while Solana has surged almost 13%, pushing its price above $194.