Bitcoin, the currency meant to undermine the financial system, has recovered from weeks of illness with Wall Street’s help.
After BlackRock, the world’s largest asset manager, expressed interest in a spot bitcoin exchange-traded fund (ETF) in the U.S., the original crypto coin rose 20% to $30,182.
BlackRock applied for a spot in Bitcoin ETF on June 15, despite the SEC’s history of rejecting such applications. Bitcoin recovered after two weeks of losses after the news.
Satoshi Nakamoto’s rebel child is excited about an ETF that exposes investors to spot bitcoin on a regulated U.S. stock exchange without custody.
CoinMarketCap.com reports that Bitcoin’s market value now accounts for about half of the $1.1 trillion crypto market, its biggest share in over two years. Its stake rose from 34% in 2018 to 40% at the start of the year.
“The news of the ETF filing is evidence of adoption and interest from top global players, which is, of course, interesting to institutional investors and traders alike,” said Mikkel Morch, chairman at digital asset investment firm ARK36.
Although it hasn’t filed for a crypto ETF, BlackRock’s track record of winning the SEC’s approval for ETFs generally has some crypto proponents optimistic. Andrew Bond of Rosenblatt Securities claims a 575-1 approval rate.
Since BlackRock’s submission, Invesco and WisdomTree have also reapplied for spot bitcoin ETFs.
The mini-rush of proposals to the U.S. watchdog comes days after the SEC sued big crypto exchanges Coinbase and Binance for allegedly breaching securities rules, chilling the cryptocurrency sector.
Not everyone wants to join.
Equity and bond restrictions are known to you. Rick Meckler, partner of Cherry Lane Investments in New Vernon, New Jersey, stated, “But you don’t fully know what the rules are for crypto.”
“Many people, including myself, have difficulty making an investment class.”
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