Bitcoin has surged above $45,000, marking its highest value in nearly two years. This upward momentum aligns with market expectations surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).

The SEC is anticipated to inform asset managers about the approval status of their spot Bitcoin ETF applications around January 3 or 4, just ahead of the January 10 deadline.

Bitcoin's rapid ascent from $42,000 at the start of the year has seen a 6% surge in the past 24 hours and a remarkable 170% increase over the last year. Notably, Bitcoin has not traded above $45,000 for almost 20 months, with the last instance occurring on April 5, 2022.

This surge is closely tied to the market's optimism regarding the SEC's potential approval of pending spot Bitcoin ETF applications. Among the key applicants are BlackRock, Grayscale, Bitwise, WisdomTree, Invesco Galaxy Bitcoin ETF, Valkyrie Investments, and Ark Invest.

An ETF, or exchange-traded fund, is a publicly traded investment instrument designed to mirror the value of an underlying asset. In the context of a Bitcoin ETF, the underlying asset being tracked is Bitcoin itself.

The introduction of a Bitcoin ETF is seen as a significant move to overcome obstacles such as exchanges, crypto wallets, and private keys, making it easier for newcomers to access Bitcoin exposure without directly managing cryptocurrency holdings.

Bitcoin's crossing of the $45,000 mark on the first day of 2024 has heightened expectations, driven by the anticipation of spot Bitcoin ETF notifications. The potential approval could lead to a launch date as early as January 10.

With 14 asset managers awaiting SEC approval, the cryptocurrency market is abuzz with predictions, with notable figures like Mark Mobius and Antoni Trenchev offering varied upward projections for Bitcoin's trajectory. Morbius anticipates a $60,000 rally by 2024. Antoni Trenchev predicts a loftier $100,000.

As Bitcoin enthusiasts celebrate the milestone, the broader impact on the crypto industry, including publicity-listed crypto companies like MicroStrategy, Marathon Digital, and Coinbase Global, is evident in pre-market rallies.

Image source: beincrypto