Bitcoin price surges beyond $90,000 each day since Nov. 12 and is now inching toward the $100,000 mark.
Bitcoin price (BTC-USD) continues to set new records in 2024, rebounding from a challenging crypto winter that began two years ago. The world's largest cryptocurrency has consistently surpassed $90,000 since November 12 and is now approaching the $100,000 milestone.
Since the presidential election, Bitcoin's price has risen over 40%, crossing the $70,000 threshold for the first time in March 2024. However, it wasn't until early November that it finally broke past the $75,000 mark, from which it has not looked back.
In early 2023, a Pew Research Center survey revealed that 75% of Americans familiar with cryptocurrency expressed doubts about its safety and reliability.
However, Bitcoin price began to surge again later that year after a federal appeals court ruled that the SEC had improperly rejected Grayscale Investments' application to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF. In October 2023, the SEC announced it would not appeal the court's decision.
By January, the SEC approved nearly a dozen new exchange-traded funds (ETFs) known as spot Bitcoin ETFs. These ETFs hold the underlying asset—such as gold, silver, or now Bitcoin—and closely track its price, excluding trading costs or fees.
“There have not been any ETFs like this before,” noted Ric Edelman, founder of the Digital Assets Council of Financial Professionals. “While there are ETFs that invest in stocks of companies within the crypto industry or that trade Bitcoin futures, this is the first time we have ETFs that directly invest in and own Bitcoin.”
The SEC’s decision enables investors to gain direct exposure to Bitcoin without needing to navigate a crypto exchange or concern themselves with storage or security issues. Instead, they can easily invest in Bitcoin by purchasing shares through their brokerage accounts, including individual retirement accounts (IRAs).
“The new spot Bitcoin ETFs are considered the safest option from a custody standpoint because they are regulated by the SEC, which takes care of the safeguarding of your Bitcoin,” Edelman added.
With all the hype surrounding bitcoin, it’s understandable if you’re tempted to buy in. But there’s a lot you need to know first before you try to profit off the volatile price.
Bitcoin and other cryptocurrencies are considered speculative investments—assets that people invest in with the hope that bitcoin price will increase quickly. Often referred to as nonproductive assets, these investments do not generate income, such as interest, dividends, or earnings. Investors typically aim to profit from short-term price movements.
“Generally, when you think about a financial asset, you’re providing capital to a company,” explained Michael Finke, a professor of wealth management and holder of the Frank M. Engle Distinguished Chair in Economic Security at The American College of Financial Services. “The company utilizes that capital to create products, which consumers buy, generating profit. You can assess the company's value based on anticipated profitability. However, with Bitcoin, there’s no production involved, so its valuation is purely speculative.”
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