The price of Bitcoin (BTC) continued to rise on Dec. 5, crossing $44,000 for the first time in 19 months. Meanwhile, a United States Securities and Exchange Commission filing revealed that BlackRock received $100,000 in seed capital from an unnamed investor for its spot Bitcoin exchange-traded fund (ETF), and crypto-related stocks managed to weather a sea of red among tech stocks.
Bitcoin price hits 19-month high
Bitcoin’s price eclipsed $44,000 on Dec. 5, fueled by optimism that the SEC will approve a spot ETF in the same year of BTC’s next quadrennial halving.
Pretty much the final boss for #BTC in this range for the RSI
If we get a God Candle like I said originally or just continue to grind upward as we have been; it would likely clear this on the RSI and the Price, which would open the door for much higher prices after this month… https://t.co/GYlQO1BJA8 pic.twitter.com/0yWh5q17kA
— Matthew Hyland (@MatthewHyland_) December 1, 2023
Adding to the bullish optimism is the expectation that the U.S. Federal Reserve will end its rate-hike campaign amid slowing inflation and a weakening labor market.
“Optimism around the Dec #FED rate decision and Jan #ETF decision can push things higher and fuel euphoria, so be prepared for what comes after that,” said Material Indicators, a trading source active on X (formerly Twitter).
The Fed’s final policy meeting of 2023 will take place Dec. 12 to 13, and it’s almost certain that policymakers will leave rates unchanged, according to CME Group’s FedWatch Tool.
BlackRock received $100,000 in seed funds for Bitcoin ETF — SEC filing
The world’s largest asset manager, BlackRock, received $100,000 in seed funding from an unknown investor for its spot Bitcoin ETF in October 2023, a recent filing showed.
The SEC filing revealed that the investor agreed to purchase 4,000 shares for $100,000 on Oct. 27, 2023, at $25.00 per share. The deal would see the investor “acting as a statutory underwriter with respect to the Seed Creation Baskets.”
This is so interesting in the nerdiest way.
— James Seyffart (@JSeyff) December 5, 2023
The latest filing by BlackRock also revealed certain details on the asset manager’s plans to pay the sponsor’s fee, where it plans to borrow Bitcoin (BTC) or cash as trade credit from the trade credit lender on a short-term basis. BlackRock can “charge their fees” via a loan instead of having to sell BTC (the ETF asset). That way, they “don’t impact BTC price that much.”
Coinbase, Marathon, Riot surge over 300% in 2023 as Bitcoin pumps
Publicly traded crypto firms have notched up to triple-digit percentage returns in 2023 and closed in the green on Dec. 4 as BTC reached a new year-high of over $42,000.
Crypto exchange Coinbase closed the day at just over $141 with a 5.5% gain, up 320% from its price at the start of 2023, per Google Finance data.
Bitcoin miners Marathon Digital and Riot Platforms closed the day with over 8% gains, recording 337% and 345% year-to-date (YTD) gains, respectively.
Crypto investment firm Galaxy Digital Holdings posted a daily gain of nearly 12% and is up 155% YTD. MicroStrategy — which has the largest Bitcoin holdings of any public company, valued at over $6.6 billion — saw a daily gain of over 6.5% and a YTD rise of 288%.
It comes despite the broader North American stock market seeing a mixed bag of gainers and losers on Dec. 4. Large-cap tech stocks like Microsoft fell 1.43% on the day, while Apple fell 0.95%. Google fell 2.02%, and chip manufacturer Nvidia fell 2.68%.
IG Australia market analyst Tony Sycamore told Cointelegraph the crypto-related stock rally is “coming off the back of Bitcoin’s spectacular gains in recent months,” which is up nearly 152% YTD and is closing in on $42,000, already hitting a 19-month high.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.