Bold moves managed to reignite the enthusiasm of investors who had been disenchanted due to a series of unfortunate incidents, including the sudden downfall of the FTX exchange towards the end of last year. To compound matters, the crypto industry has faced amplified regulatory scrutiny, with the U.S. Securities and Exchange Commission (SEC) recently filing lawsuits against Coinbase Global and Binance, alleging rule violations. Both entities vigorously deny these allegations.
Image-: Coinpage
In a stunning turn of events, Bitcoin, the reigning king of cryptocurrencies, skyrocketed to a level not seen in over a year on Friday. This surge came as a result of various factors, including BlackRock’s audacious plans to introduce a bitcoin exchange-traded fund (ETF), despite the intensified scrutiny of U.S. regulators in the digital asset arena. BlackRock, a colossal asset management firm, recently filed for the creation of iShares Bitcoin Trust, an ETF that would enlist Coinbase Custody as its custodian, granting institutional investors access to the captivating realm of cryptocurrencies.
Adding to the excitement, EDX Markets, a crypto exchange supported by investment powerhouses Charles Schwab, Fidelity, and Citadel Securities, made waves earlier this week by announcing its decision to enable trading of select cryptocurrencies. These bold moves managed to reignite the enthusiasm of investors who had been disenchanted due to a series of unfortunate incidents, including the sudden downfall of the FTX exchange towards the end of last year. To compound matters, the crypto industry has faced amplified regulatory scrutiny, with the U.S. Securities and Exchange Commission (SEC) recently filing lawsuits against Coinbase Global and Binance, alleging rule violations. Both entities vigorously deny these allegations.
Since the filing by BlackRock, Bitcoin has experienced a staggering surge of nearly 25% in value. On Friday, it soared to an astonishing $31,458, marking its highest point since June 7, 2022. At present, it maintains a 3.29% increase, resting at $30,872.
“The recent surge of institutional interest has effectively dispersed the gloomy clouds that loomed over the crypto domain,” stated Kate Laurence, a general partner at Bloccelerate VC, an investment firm specializing in crypto projects. “The involvement of esteemed entities like BlackRock, Charles Schwab, Fidelity, and Citadel underscores the significant commitment of institutions to this space, despite the recent regulatory crackdown.” In an era of low interest rates, investors flocked to cryptocurrencies, propelling the market to an unprecedented value of $3 trillion in 2021. However, as interest rates began to rise, caution seeped in, causing the market value to settle around $1.24 trillion, as reported by CoinGecko.
Ethereum, the second-largest cryptocurrency worldwide, has also witnessed an upswing of over 16% since the previous week. On Friday, it exhibited a 1.63% increase, reaching $1,903.20.
Some market observers posit that the SEC’s crackdown might actually benefit Bitcoin, which is commonly regarded as a commodity rather than a security and, consequently, falls beyond the jurisdiction of the SEC. “The SEC’s legal action has paved the way for robust and regulated players, so I cautiously hold an optimistic outlook that this BlackRock development will have a lasting impact,” commented Doug Schwenk, the CEO of Digital Asset Research.
As the crypto industry continues to evolve amidst regulatory challenges, the dynamic nature of the market and the involvement of influential institutions instill a sense of hope and resilience, fostering an environment ripe with possibilities and uncertainties alike.
