BTC passes $47K!

Bitcoin's price surges over $47,000 as VanEck invests $72 million into its Bitcoin ETF.

Blockchain

BTC Surpasses $47K as VanEck Invests $72M in Bitcoin ETF

By Angela Torres

January 9, 2024

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The world's largest cryptocurrency, Bitcoin (BTC), surged past $47,000 on Monday. This significant move followed updates from issuers such as BlackRock and Fidelity who submitted amended forms to the U.S. Securities and Exchange Commission (SEC). These firms are looking to issue spot Bitcoin Exchange-Traded Funds (ETFs) and revealed additional information about their initial funding.


One of the larger players is the investment firm VanEck which has taken a decisive step by seeding its potential spot Bitcoin ETF with an initial investment of $72.5 million according to its amended S-1 form. Another player, Bitwise, disclosed that it seeded its proposed ETF with an initial amount of $500,000 while Pantera Capital expressed non-binding interest in contributing a substantial $200 million if approval is secured.


BlackRock also entered this fray by seeding its potential spot Bitcoin ETF with an initial investment of $10 million as per details provided in its amended S-1 form. With these moves from major players in the financial industry, anticipation builds for regulatory decisions on Bitcoin spot ETF applications.


On January 5th earlier this week VanEck committed to allocating 5% of prospective profits from its spot Bitcoin ETF to support core developers at Brink. The company initiated support by making an initial donation of $10,000 towards aiding Brink's crucial work.


In terms of future predictions for BTC price Standard Chartered Bank delivered a forecast suggesting that BTC could surpass $200,000 by the conclusion of 2025. Geoffrey Kendrick head research at Standard Chartered conveyed this outlook stating that if anticipated inflows related to ETFs materialize then they envision a year-end level approaching the said figure aligning with their earlier estimations targeting up until end 2024.


Certain 'Bitcoin whales', those holding large amounts bitcoin have been observed moving into profit-taking zones following recent surges Lookonchain reported one strategic whale depositing all their 1,000 BTC (equivalent to $22.47 million) into Binance following Bitcoin's surge above $45,000.


The same whale had been observed depositing a total of 4,000 BTC amounting to $178.7 million over the past two weeks at an average price of $44,673 and executing sales at high prices on each occasion.


These movements serve as indicators of the growing interest and investment in Bitcoin from various financial entities and individuals alike. With significant players like BlackRock and Fidelity entering the fray with their proposed spot Bitcoin ETFs it is clear that this cryptocurrency continues its trajectory into mainstream finance while also potentially opening up opportunities for retail investors through these ETF offerings.

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