It is a new year and a time investors are positioning their minds toward new possibilities. Trading in 2021 had experienced its ups and downs in all aspects of the cryptocurrency ecosystem, but historical records were also set.
For instance, Bitcoin printed several all-time highs (ATHs), the latest price level above the $68,000 traced back in November.
Some of the ‘Firsts’ in the Crypto Ecosystem in 2021
The digital currency ecosystem recorded a few events that happened for the very first time in 2021. Tesla’s Chief Executive Officer, Elon Musk came out more openly to back Bitcoin in the first quarter, leading his firm to buy up $1.5 billion worth of the premier coin back in February last year. While this was not the first bullish gesture from an institutional investor, it marked the first from one of the most prestigious auto brands in the world.
Also in 2021, Bitcoin became the official legal tender of the Central American nation, El Salvador. After facing a number of criticisms from the World Bank and the International Monetary Fund (IMF), El Salvador floated its Bitcoin law on September 7 with assistance from the Central American Bank for Economic Integration (CABEI).
Counting the number of firsts, Chinese authorities stood their ground on the crypto ban in the country and significantly caused a shift in the mining hashrate to sway from China. Regulations in the United States were a matter of mild concern, but mostly on the productive side as the SEC approved the trading of ProShares Bitcoin Futures-based Exchange Traded Fund (ETF).
Hopes for a Spot Bitcoin ETF this Year
America is becoming more aware of the benefits and impacts of digital currencies, and the SEC is not oblivious to this fact. While the market watchdog had done the best it could do in the past year to approve ProShares Futures ETF, the gesture has sent more fund managers to keep hopes alive that at least one of the tens of Bitcoin spot ETF applications filed with the SEC will gain approval this year.
From Fidelity to Grayscale to Bitwise amongst others, the race to float an actual Bitcoin ETF is just heating up and expectations from the investing community remain high as the year resumes the first trading week in a few hours.
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