The largest cryptocurrency, Bitcoin (BTC), has exhibited an impressive upswing, with its price soaring by nearly 7% in the past 24 hours. This price surge occurred alongside an increase in interest from traditional financial institutions, despite the recent crackdown by the SEC. Last week, the world’s largest asset manager BlackRock submitted an application for a spot-Bitcoin ETF with the SEC. Other financial giants, such as Fidelity Investments and WisdomTree, are also making similar moves.
In addition, crypto exchange EDX Markets—backed by Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.—is planning to commence operations in the country soon. The involvement of traditional financial players has improved investor sentiment significantly. According to Hayden Hughes, co-founder of social-trading platform Alpha Impact, this rally is backed by institutional demand, with the BlackRock announcement on a Bitcoin ETF and EDX Markets giving Bitcoin a boost.
However, the SEC has posed a significant hurdle to a spot-Bitcoin ETF in the past. Despite multiple applications from crypto industry players, the SEC has consistently rejected them, often citing insufficient consumer protection measures and other risks. Yet, with influential financial giants now supporting such ETFs, the situation could change. Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, believes that BlackRock’s filing has reignited the race.
BlackRock recently submitted its application, while Grayscale Investments remains embroiled in a legal battle with the SEC to transform its Bitcoin Trust into an ETF. The value difference of Grayscale’s trust has decreased, with some speculating that BlackRock’s move may potentially aid Grayscale’s case.
Another topic of interest among traders is China’s economic stimulus plans. With the central bank recently reducing borrowing costs, the market is keen to learn more about these measures. It is essential to note that the opinions presented here depend on market conditions, emphasizing the importance of performing thorough market research before investing in cryptocurrencies. The author or the publication will not assume any responsibility for any personal financial losses incurred.
Source: Coingape
