Crypto markets: Bitcoin’s 160 pct Rebound in 2023 Is a Gamble on ETF ‘Demand Shock’
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The sense of doom that gripped crypto markets at the end of 2022 following a $1.5 trillion wipeout has 12 months later given way to a very different sentiment: avarice. Bitcoin stormed back with a more than 160% advance this year that added some $530 billion to its market capitalization. In its wake, myriad smaller tokens ranging from Sam Bankman-Fried-backed Solana to dog- and frog-themed memecoins took off as investors embraced risk again. An investor who bought $100,000 of Solana at the start of 2023 would now be sitting on a more than $800,000 gain. Underpinning much of the bonanza is optimism that US regulators will soon give their first blessing for an exchange-traded fund that invests directly in Bitcoin. Investors will find out by Jan. 10 if that bet, which crypto bulls ...