Bitcoin’s popularity is on the rise as it reaches a value of $47,000, with a growth rate of 10%

The Bitcoin currency remained stable after rising above $47,000 due to speculations that the United States is preparing to approve the launch of the country’s first exchange-traded funds that directly invest in the world’s largest digital asset.

The cryptocurrency decreased to $46,770 during trading, following a 6.5% jump on Monday in the United States. Its increase in the new year so far has reached 10%, contrasting with the declines seen in stocks and gold during the same period. The cryptocurrency market expects to receive approval for Bitcoin exchange-traded funds in the United States by the deadline of January 10th.

Several companies, including “BlackRock,” “Fidelity,” and “Ark Investment Management,” have applied for licenses to launch immediate exchange-traded funds for Bitcoin. These companies have updated their files with the Securities and Exchange Commission, and the regulatory body will have until tomorrow, Wednesday, to take action on at least one of the requests. Speculators are betting that the regulatory body will announce a large number of decisions simultaneously to avoid granting what is known as the first-mover advantage.

If approval is granted for those funds, the next question will be related to the amount of money that will be attracted. Bitcoin has risen by 172% in the past 12 months, indicating that traders expect greater adoption of the digital currency by major investors through exchange-traded funds.

According to Kyle Duane, the trader at “Arka”, it seems that participants have begun to believe that the initial inflows will already exceed expectations.

Applicants modified their files on Monday in the United States, making a final push to submit applications for immediate trading of Bitcoin exchange-traded funds after over a decade of initial attempts.

Gary Gensler, the chairman of the US Securities and Exchange Commission, has repeatedly argued that cryptocurrencies are riddled with fraud and misconduct. The regulatory body has taken stringent measures against the sector following the market crash in 2022 and the collapses that included the bankruptcy of Sam Bankman-Fried’s subsidiary exchange, FTX.

However, the regulatory body lost a major legal battle against the cryptocurrency asset manager “Grayscale Investments” last year, leading to speculations that the regulatory authority would have to yield to the immediate exchange-traded funds.

The advancement in Bitcoin’s price has led to the expansion of the digital asset market on a larger scale, boosting smaller cryptocurrencies such as Solana and Cardano. Most US stocks associated with cryptocurrencies rose on Monday, paving the way for their Asian counterparts like the Japanese company “Monex” and the South Korean company “Woori Technological Investments”.