Bitcoin has surpassed $31,000 for the first time this year.

BTCUSD has experienced a remarkable surge, reaching its peak for the year and witnessing an impressive 90% increase. Investors are flocking back to this dominant cryptocurrency, which boasts the largest market capitalization. This resurgence comes after a challenging 13-month period for the crypto markets, marked by numerous bankruptcies and exchange failures.

Bitcoin’s price, while still below its impressive November 2021 peak of approximately $68,000, recently surpassed the $31,000 mark. This is the first time it has reached such a level since April, when it briefly touched $31,005. Prior to that, the digital asset had not surpassed the $30,000 mark in trading since June 2022, prior to the market turbulence that ultimately resulted in the downfall of FTX in November.

Why Is Bitcoin Rising?

Bitcoin has experienced a surge in attention following the recent filing of an application by the esteemed asset management firm, BlackRock (BLK), for a spot bitcoin exchange-traded fund. According to BlackRock’s filing, the iShares Bitcoin Trust will only generate new shares if they are fully supported by an equivalent amount of BTC in a 1:1 ratio.

In response to the market’s signal, esteemed financial institutions like Invesco (IVZ) and Wisdomtree (WT) have taken note and proceeded to enhance their previously declined applications.

Investors are eagerly anticipating the potential surge in trading volumes for digital assets, as they remain hopeful for Securities and Exchange Commission (SEC) approval of these new ETFs. The regulator has thus far declined spot bitcoin ETF applications.

In an unexpected turn of events, the SEC has granted its approval for a 2X leveraged bitcoin fund. From a risk perspective, it is worth noting that a 2X leveraged ETF could be deemed relatively riskier compared to a spot ETF. The 2X Bitcoin Strategy ETF from Volatility Shares is set to commence trading on June 27, with the BITX ticker symbol.

The cryptocurrency sector has admirably rebounded from the unfortunate downfall of the FTX exchange and navigated through a challenging regulatory landscape this year. Cameron Winklevoss, the esteemed founder of the esteemed Gemini and Genesis crypto firms, has astutely observed that the opportune moment to acquire bitcoin, prior to the imminent opening of the ETF floodgates, is rapidly dwindling.