Bitcoin's Bullish Momentum
Driven by BlackRock Inc.'s application for a U.S. spot Bitcoin exchange-traded fund (ETF), **Bitcoin breached the $28,000 threshold** for the first time this month. During Tuesday's U.S. trading session, Bitcoin surged 5.3% to $28,142, a two-week high. Smaller cryptocurrencies like Ethereum and Binance Coin showed relatively muted movements.
Since BlackRock submitted its application, Bitcoin has rallied approximately 9%, breaking through a key resistance level around $27,000.
BlackRock's ETF Application
On June 15, BlackRock filed an application with the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin ETF. While the SEC has historically rejected such proposals, BlackRock’s attempt carries significant weight as the world’s largest asset manager, overseeing $9 trillion in assets as of March 2023.
Key details:
- The proposed iShares Bitcoin Trust would list on Nasdaq.
- Coinbase Global Inc. will serve as the custodian.
- This marks roughly the 30th attempt to launch a spot Bitcoin ETF, all previously denied due to market manipulation concerns and insufficient investor protections.
👉 Why BlackRock’s ETF could redefine crypto investing
Industry Developments
EDX Markets Goes Live
Backed by Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp., the new institutional-focused crypto exchange EDX Markets has launched. Key features:
- Supports trading for Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
- Targets institutional investors, offering a compliant alternative amid heightened U.S. regulatory scrutiny.
Traditional Finance Embraces Crypto
Deutsche Bank has applied for a digital asset custody license in Germany. According to Arca trader Kyle Doane:
"With EDX’s launch and traditional firms entering the space, there’s a clear race to capture market share."
FAQs
Why is BlackRock’s ETF application significant?
BlackRock’s involvement signals institutional validation, potentially paving the way for SEC approval and broader market adoption.
How does EDX Markets differ from retail exchanges?
EDX caters exclusively to institutions, emphasizing regulatory compliance and reducing counterparty risks prevalent in retail platforms.
What’s next for Bitcoin’s price?
Analysts suggest the $30,000 psychological barrier is the next target, contingent on ETF approvals and macroeconomic stability.
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