Investing.com – Bitcoin hit a two-month high this week, as a string of applications for an exchange-traded fund (ETF) tracking the world’s largest cryptocurrency sparked optimism over increased institutional interest in the token.
The price of bitcoin surged by up to 144% over the last three days, reaching a high above $30,300 at 23:32 ET on Wednesday before stabilizing. On Thursday, Crypto rose nearly 6%, reaching a peak not seen in nearly two months.
The token has seen renewed interest after BlackRock, the world’s largest asset manager, applied for an ETF that will directly track Bitcoin. Several other institutional investors such as WisdomTree, Valkyrie, and Citadel have also applied for Bitcoin ETFs. Coinbase will act as the custodian of the Blackrock ETF.
The biggest driver of the 2021 cryptocurrency rally was institutional buying. However, in the wake of a string of high-profile bankruptcies and rising interest rates, institutional investors pulled most of their money out through 2022. The ETF filings have spurred optimism that institutional interest in the crypto sector will revive, despite U.S. regulatory crackdowns against its major players.
The Securities and Exchange Commission has filed lawsuits against major exchanges such as Binance and Coinbase, as well as against Binance founder Changpeng Zhao. These lawsuits have caused significant losses on the crypto market, with Bitcoin dropping to its lowest level in three months in June. Moreover, U.S. centralized crypto exchanges experienced a wave of withdrawals due to fears of losing their traditional banking partners.
Despite recent gains, Bitcoin’s record highs from late-2021, which were near $70,000, remain far out of reach. The SEC’s lawsuits have also impacted trading volumes in recent weeks.
