The largest cryptocurrency in the world, Bitcoin, reached a record high on Friday, concluding a week of gains that were aided in part by BlackRock's (BLK.N) decision to launch an exchange-traded fund (ETF) for the cryptocurrency amid increased regulatory scrutiny of the digital asset market in the United States.
The largest asset management in the world, BlackRock, submitted paperwork last week to start iShares Bitcoin Trust, an ETF that would have Coinbase Custody as its custodian and provide institutional investors with exposure to cryptocurrencies.
This week, the cryptocurrency exchange EDX Markets also declared that it will permit trading on a select number of cryptocurrencies. It is backed by the financial institutions Charles Schwab, Fidelity, and Citadel Securities.
Following a slew of crypto firm meltdowns, notably the abrupt collapse of exchange FTX late last year, the moves have rekindled investor interest in cryptocurrencies, which had been in decline.
Increased regulatory scrutiny, notably the U.S. Securities and Exchange Commission's decision to prosecute cryptocurrency titans Coinbase Global and Binance this month on the grounds of rule violations, have added to the unfavourable feeling. The two contest the charges.
Since BlackRock's filing, Bitcoin's value has increased by around 25%. On Friday, it reached a high of $31,458, the highest level since June 7, 2022, and was last up 3.29% at $30,872.
"The dark clouds overshadowing crypto have lifted in recent days amid a burst of institutional interest," said Kate Laurence, general partner of Bloccelerate VC, which invests in crypto projects.
"The likes of BlackRock, Charles Schwab, Fidelity and Citadel throwing their hats into the crypto ring is hugely significant because it shows that institutions are very serious about the space - despite the recent regulatory crackdown."
When interest rates were low, investors flocked to cryptocurrencies, driving the market to a $3 trillion high in 2021. The market worth is currently around $1.24 trillion, according to data from CoinGecko, but they became wary when rates rose.
The second-largest cryptocurrency in the world, Ethereum, has increased by more than 16% since last week. On Friday, it was worth 1,903.20, up 1.63%.
Some market observers claimed that the SEC's enforcement actions may be advantageous for bitcoin, which is typically viewed as a commodity rather than a security and is hence outside the SEC's purview.
"The SEC lawsuit has created opportunities for robust, regulated players, so I'm cautiously optimistic that this BlackRock event will have some sustainability," said Doug Schwenk, CEO of Digital Asset Research.
(Source:www.nasdaq.com)
The largest asset management in the world, BlackRock, submitted paperwork last week to start iShares Bitcoin Trust, an ETF that would have Coinbase Custody as its custodian and provide institutional investors with exposure to cryptocurrencies.
This week, the cryptocurrency exchange EDX Markets also declared that it will permit trading on a select number of cryptocurrencies. It is backed by the financial institutions Charles Schwab, Fidelity, and Citadel Securities.
Following a slew of crypto firm meltdowns, notably the abrupt collapse of exchange FTX late last year, the moves have rekindled investor interest in cryptocurrencies, which had been in decline.
Increased regulatory scrutiny, notably the U.S. Securities and Exchange Commission's decision to prosecute cryptocurrency titans Coinbase Global and Binance this month on the grounds of rule violations, have added to the unfavourable feeling. The two contest the charges.
Since BlackRock's filing, Bitcoin's value has increased by around 25%. On Friday, it reached a high of $31,458, the highest level since June 7, 2022, and was last up 3.29% at $30,872.
"The dark clouds overshadowing crypto have lifted in recent days amid a burst of institutional interest," said Kate Laurence, general partner of Bloccelerate VC, which invests in crypto projects.
"The likes of BlackRock, Charles Schwab, Fidelity and Citadel throwing their hats into the crypto ring is hugely significant because it shows that institutions are very serious about the space - despite the recent regulatory crackdown."
When interest rates were low, investors flocked to cryptocurrencies, driving the market to a $3 trillion high in 2021. The market worth is currently around $1.24 trillion, according to data from CoinGecko, but they became wary when rates rose.
The second-largest cryptocurrency in the world, Ethereum, has increased by more than 16% since last week. On Friday, it was worth 1,903.20, up 1.63%.
Some market observers claimed that the SEC's enforcement actions may be advantageous for bitcoin, which is typically viewed as a commodity rather than a security and is hence outside the SEC's purview.
"The SEC lawsuit has created opportunities for robust, regulated players, so I'm cautiously optimistic that this BlackRock event will have some sustainability," said Doug Schwenk, CEO of Digital Asset Research.
(Source:www.nasdaq.com)
