Bitcoin, the world’s largest cryptocurrency, saw its price rise to a more than one-year high on Friday. According to CoinMarkepCap, the digital asset was trading above $30,000 on early Saturday morning. Over the past 24 hours, BTC posted a 2.1 percent gain, as per CoinDesk. The last week saw the cryptocurrency surge by 20 percent. In June 2022, Bitcoin registered a $31,000 gain.
The rise in Bitcoin’s value came shortly after BlackRock, the world’s largest asset manager, applied for a spot to create a Bitcoin exchange-traded fund (ETF) despite the US regulatory scrutiny on the digital asset sector. BlackRock filed to launch iShares Bitcoin Trust, an ETF that will be supported by Coinbase Custody, and will offer institutional investors exposure to the cryptocurrency, as reported by Reuters.
Following BlackRock’s filing, Bitcoin soared by 25 per cent. Crypto exchange EDX Markets, backed by investment agencies such as Charles Schwab, Fidelity and Citadel Securities, also said they will start trading on some of the cryptocurrencies. The news has once again attracted investors’ attention to the digital asset sector.
Kate Laurence, the general partner of Bloccelerate VC, which invests in crypto projects, commented on the recent events: “The dark clouds overshadowing crypto have lifted in recent days amid a burst of institutional interest. 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.”
The US Securities and Exchange Commission (SEC) recently sued crypto giants Coinbase Global (COIN.O) and Binance for alleged violations of its rules. Both firms have denied the allegations, reported Reuters.
Despite the regulatory crackdown, some experts believe that it could be beneficial for Bitcoin, as it is generally considered a commodity rather than a security, which keeps it beyond the SEC’s remit. Doug Schwenk, CEO of Digital Asset Research, said that the SEC lawsuit has created opportunities for regulated players and expressed his optimism about the sustainability of BlackRock’s move.
Crypto products and NFTs are highly risky and highly speculative investments. It is important to note that there may be no regulatory recourse for any losses from such transactions. Therefore, readers are advised to seek expert advice and read any related offer documents carefully before making any kind of investment.
