Bitcoin, the world’s largest cryptocurrency, touched a more than one-year high on Friday, closing a week of gains boosted by BlackRock’s (BLK.N) intentions to develop a bitcoin exchange-traded fund (ETF) amid increased U.S. regulatory scrutiny.
Last Monday, BlackRock, the world’s largest asset management, filed to launch iShares Bitcoin Trust, an ETF with Coinbase Custody that would expose institutional investors to cryptocurrency.
EDX Markets, funded by Charles Schwab, Fidelity, and Citadel Securities, said it would trade several cryptocurrencies this week.
After a string of crypto firm failures, notably FTX’s collapse late last year, the moves have reignited investor interest in cryptocurrencies.
THIS MONTH, the U.S. Securities and Exchange Commission’s lawsuit against Coinbase Global (COIN.O) and Binance has exacerbated negative sentiment. Accusers deny.
Bitcoin has risen 25% since BlackRock’s filing. On Friday, it reached $31,458, its highest level since June 7, 2022, and closed up 3.29% at $30,872.
“The dark clouds overshadowing crypto have lifted in recent days amid a burst of institutional interest,” said Kate Laurence, general partner of Bloccelerate VC, a crypto startup investor.
“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.”
Cryptocurrencies reached $3 trillion in 2021 due to low-interest rates and investor demand. As rates rose, people became wary. CoinGecko statistics puts the market worth at $1.24 trillion.
Ethereum, the second-largest cryptocurrency, has risen almost 16% since last week. On Friday, 1,903.20 was up 1.63%.
Market observers say that Bitcoin, a commodity rather than a security, may benefit from the SEC crackdown.
“The SEC lawsuit has created opportunities for robust, regulated players, so I’m cautiously optimistic that this BlackRock event will have some sustainability,” said Digital Asset Research CEO Doug Schwenk.
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