Monday was yet another day in the latest cryptocurrency rally. As always, some of the more popular altcoins rushed higher along with the top crypto investments.
The day’s double-digit winners included XRP (CRYPTO: XRP), which had risen by 17% in late afternoon trading from 4 p.m. ET the previous Friday. NEAR Protocol (CRYPTO: NEAR) was also doing well with a 14% gain, as was Toncoin (CRYPTO: TON) at a 17% increase and Avalanche (CRYPTO: AVAX), advancing 15%. Utility token Chainlink (CRYPTO: LINK) was a standout, increasing by just shy of 20%.
The seemingly endless Bitcoin surge
These days, there’s no mystery as to why those cryptocurrencies are soaring. People just can’t keep their hands off spot Bitcoin (CRYPTO: BTC) spot exchange-traded funds (ETFs), the hot investible securities of the moment. That really isn’t surprising, as these instruments offer investors the chance to hold Bitcoin without the hassle of direct ownership (which requires owning and managing a dedicated digital wallet, among other inconveniences).
As a result, Bitcoin has been quite a rocket ship of an asset lately. On Monday, it sailed to a new all-time high, not far below $73,000. That’s nearly $30,000 higher from the start of this year alone.
There’s little indication it’ll slow down anytime soon, because the spot ETF trend is spreading — how could it not, given the instant and heavy popularity? On Monday, the London Stock Exchange (LSE) announced that it is soon to start accepting applications for exchange traded notes (ETNs), which are cousins of ETFs that trade more like debt instruments.
Those applications will start to be accepted in the second quarter of this year, the LSE added, and the ETNs can be backed by either Bitcoin or the leading altcoin, Ether.
It’s possible there will be some significant restrictions on investing in Bitcoin and Ether ETNs, as U.K. regulator the Financial Conduct Authority quickly issued a press release stating that they will be available only for professional investors, i.e., accredited investment firms and credit institutions.
Around the world with the new crypto investments
Even if such limits are imposed on crypto ETN ownership, determined investors on the U.K. market will surely find a way to get their hands on such assets. After all, like in the U.S., demand is sure to be heavy, strong, and irresistible.
Which is why we can also count on crypto ETF/ETN mania to spread to other markets. Even though the U.K. is no longer a member of the sprawling European Union, its finance industry still sets the pace for that continent. We can imagine that investors in other parts of the world will be similarly eager to plow their money into these hot new instruments too.
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Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Chainlink, Ethereum, and XRP. The Motley Fool has a disclosure policy.
Why Major Altcoins Were Soaring on Monday was originally published by The Motley Fool