Bitcoin, the world's leading cryptocurrency, has made a triumphant return as 2024 commenced, breaking through the elusive $45,000 price barrier for the first time since April 2022, per a CNBC article. This remarkable resurgence comes as investor confidence swells in anticipation of the potential approval of a bitcoin exchange-traded fund (ETF), offering a more accessible avenue for institutions to invest in digital assets.

Impressive Price Rebound

Bitcoin's comeback in 2024 has been nothing short of spectacular, defying previous market trends. The cryptocurrencies winning trend started from late 2023 only. The digital coin recorded a staggering 157% price increase last year. Investor confidence grew amid prospects of a Bitcoin ETF (read: 5 Favorable Events Bitcoin Had in 2023: ETFs in Focus).

A bitcoin ETF would provide investors with a regulated and simplified way to gain exposure to Bitcoin's price movements, without the need to directly hold the cryptocurrency. Prominent players like BlackRock and others have recently updated their registration forms for proposed bitcoin ETFs, hinting at an impending decision by the U.S. Securities and Exchange Commission (SEC). Industry experts are optimistic about the approval of these funds, with expectations running high for an announcement in January.

Halving Event in 2024

Another key factor contributing to Bitcoin's positive outlook is the upcoming halving event scheduled for 2024.  During a halving event, the rewards offered to miners are halved, effectively reducing the supply of new Bitcoin entering the market. Historically, these events have often preceded significant price surges, making them a point of anticipation for Bitcoin enthusiasts.

Cryptocurrency Market Momentum Extends Beyond Bitcoin

The bullish sentiment is not exclusive to Bitcoin; other cryptocurrencies are also experiencing substantial gains.  Ethereum (Ether), a prominent altcoin, has seen a notable 4% increase in its price, reaching approximately $2,387. Solana, another rising star in the crypto world, surged by an impressive 7%, attaining a price point of around $113.

Against this backdrop, following are the regular ETFs on this concept that may win in the near term.

ETFs in Focus

VanEck Digital Transformation ETF DAPP – Up 290.5% in 2023

Global X Blockchain ETF BKCH – Up 275.4% in 2023

Valkyrie Bitcoin Miners ETF WGMI – Up 310% in 2023

First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT – Up 205.7% in 2023

Fidelity Crypto Industry and Digital Payments ETF FDIG – Up 171.2% in 2023

iShares Blockchain and Tech ETF IBLC – Up 202.2% in 2023

(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Global X Blockchain ETF (BKCH): ETF Research Reports

VanEck Digital Transformation ETF (DAPP): ETF Research Reports

First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports

Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports

Fidelity Crypto Industry and Digital Payments ETF (FDIG): ETF Research Reports

iShares Blockchain and Tech ETF (IBLC): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research