Bitcoin Soars to New Heights as Financial Giants Embrace Crypto Revolution.
- Major Players from Traditional Finance Sector Drive Bitcoin Rally with Crypto Initiatives.
In recent developments, Bitcoin, the largest digital asset, experienced a remarkable surge in value, reaching its highest level since early May.
This surge can be attributed to the involvement of influential entities from the traditional financial sector in various crypto initiatives.
As of 11:10 am in Singapore on Wednesday, Bitcoin witnessed a 3% increase, trading at an impressive $28,720. This surge adds to the cryptocurrency’s rebound this year, boasting a remarkable 74% growth. Additionally, other cryptocurrencies like Ether, Cardano, and Solana also saw gains during this period.
A glimmer of hope and renewed enthusiasm shone upon crypto investors with the launch of the digital-asset exchange, EDX Markets. Supported by renowned firms such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab, this initiative sparked confidence within the crypto community.
Furthermore, prominent players like BlackRock and WisdomTree have made swift applications to launch spot US bitcoin exchange-traded funds (ETFs).
These positive developments have mitigated some of the concerns resulting from the US Securities and Exchange Commission’s (SEC) recent crackdown on cryptocurrencies, including lawsuits targeting exchange operators Binance Holdings and Coinbase Global. Moreover, the SEC has classified numerous digital tokens as unregistered securities, further affecting market sentiment.
Hayden Hughes, the co-founder of the social-trading platform Alpha Impact, attributes the recent rally to institutional demand. Hughes stated, “The BlackRock announcement on a bitcoin ETF, plus EDX Markets, gave bitcoin a boost on hopes that traditional institutions will add depth to the crypto market.”
WisdomTree, after previous setbacks, is making another attempt to secure permission for a spot US Bitcoin ETF. BlackRock’s filing, submitted on June 15, carries significant weight due to its status as the world’s largest asset manager with a proven track record of gaining approvals.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, noted, “The BlackRock filing changed everything; that reignited the race.” The application was submitted amidst Grayscale Investments LLC’s ongoing legal battle with the SEC to transform the Grayscale Bitcoin Trust into a physically backed ETF. The narrowing discount of the trust’s net asset value is generating speculation that BlackRock’s step could bolster Grayscale’s case.
In Europe, Deutsche Bank has also taken steps towards operating a custody service for digital assets by applying for regulatory permission. Observers believe that Deutsche Bank would not undergo such a process without receiving sufficient interest from its large clients, emphasizing the growing intrigue around digital assets.
While macro forces such as the Federal Reserve’s stance on interest-rate hikes and potential economic stimulus in China are shaping the markets, Bitcoin’s recent surge serves as a testament to its resilience. It is worth noting that despite the cryptocurrency’s impressive performance, it still lags significantly behind its pandemic-era peak in 2021 when liquidity-fueled prices soared to nearly $69,000.
The current surge in Bitcoin’s value, driven by the active participation of major financial institutions, heralds a new era of acceptance and growth for cryptocurrencies, instilling renewed optimism in the market.