The Tribune

By CHRIS ILLING

CCO @ ActivTrades Corp

The digital currency, Bitcoin, is making strong gains and traded temporarily above the $35,000 mark last week. One reason for the price surge is speculation about a first “direct” Bitcoin exchange-traded fund (ETF).

Last week Tuesday, Bitcoin hit its highest level since May 2022 at $35,172 in early trading. And last Friday, the most significant cyber currency was trading at around $34,000. This was approximately 8.5 percent more than the previous week. Other digital currencies, such as Ether or Tether, also rose.

The crypto currency benefited from the increased volatility in the markets as well as speculation about the launch of a Bitcoin spot ETF in the US for the first time. The hope for the final approval of a Bitcoin exchange-traded fund is fuelling the hopes of investors worldwide.

The launch of a spot ETF on Bitcoin is considered an important step towards further spread and acceptance of the digital currency.

The fact that the digital currency is enjoying increasing popularity is also evident at Ferrari. The Italian luxury sports car manufacturer is now accepting crypto currency payments in the US. Following the wishes of its wealthy customers, the virtual currency will soon be accepted in Europe as well. The decision was made because customers and retailers were increasingly asking for this option. The car prices will not change, since there are no fees and no mark-ups when you pay with crypto currencies, said the director of marketing for Ferrari.

The US electric car manufacturer, Tesla, had temporarily accepted payments in Bitcoin in 2021. Elon Musk quickly stopped this payment option, however, citing the enormous energy consumption involved in the creation of the currency.

The majority of large corporations, including those in the automotive industry, have so far stayed away from crypto currencies as the volatility of Bitcoin and other tokens makes them impractical for trading. Patchy regulation and high energy consumption have also prevented the proliferation of crypto currencies as a means of payment. The often-dubious origin of money has also slowed down its spread in the business world. In the case of Ferrari, the payment processor BitPay is chosen to handle the payments and instantly convert crypto currency payments into traditional currencies on behalf of Ferrari’s merchants.