Bitcoin hits $57K, highest since 2021

Bitcoin, like U.S. stocks, is on a roll in the new year, hitting a two-year high as seasoned investors pile back in along with a new crowd. 

The largest cryptocurrency by market value, crossed $57,000, the highest price since 2021 before settling back, as tracked by Coindesk. For the year, it’s up nearly 30% but remains below its all-time high of $67,352.59 reached on Nov. 9, 2021. By comparison, the S&P 500 is up 6% over the same period.

Sentiment for the cryptocurrency reignited after the Securities and Exchange Commission approved the first spot bitcoin ETF on Jan. 10. 

“I believe spot bitcoin ETFs are the main driver. Excluding Grayscale Bitcoin Trust, (GBTC), these ETFs have netted over $6 billion of inflows since their release in early January,” Roxanna Islam, head of sector and industry research, at VettaFI told FOX Business.

These ETFs allow investors to efficiently track the price of bitcoin, in which volatility and swings are not uncommon. It gives registered financial advisers the option to offer the asset to customers. 

HOW BITCOIN ETFS WORK 

Eleven funds hit the market. On Monday, nine of these saw record daily volume of a combined $2.4 billion, according to Bloomberg, most of which was led by BlackRock’s iShares Bitcoin Trust. The fund’s assets topped $7 billion through Monday. The firm itself is the world’s largest money manager with over $9 trillion in assets. 

LIVE CRYPTO PRICES: FOXBUSINESS.COM

Robinhood, one of the brokerage firms offering 11 of these ETFs, said it’s seeing “nice interest in the ETFs” mentioned on its February earnings call.

“We think it increases overall market interest in crypto and also brings liquidity to the market. So, net-net, we’re really pleased with the bitcoin ETFs,” said Robinhood’s Chief Financial Officer Jason Warnick. 

Other bitcoin ETFs are offered by Ark Investments, WisdomTree, Fidelity and Grayscale.