Cryptocurrency prices end the week high in New York City as the US government clamps down on the leading pioneers in the digital asset industry while markets benefit from the entry of traditional financiers.
All crypto tokens were worth about $1.25 trillion as of late afternoon, according to CoinGecko, up about 12% for the week and 51% for the year. Market leader Bitcoin BTC (BTC) is at $30,889, up 2.5% over the past 24 hours and up 20% over the week, while second-placed cryptocurrency Ether (ETHETH) is up 0.8% to $1,901. The seven-day gain was $14. %.
Two forces seem to be driving prices. The first was the announcement last week that BlackRock BLK, the world’s largest asset manager, is seeking approval to list spot market Bitcoin in an exchange-traded fund (ETF). The Securities and Exchange Commission, while allowing futures-based ETFs, has repeatedly refused to accept such funds, arguing the latter are less susceptible to market manipulation. BlackRock took steps to make its services look SEC-friendly, but after multiple competitors were turned down, a company this powerful struggled to prepare for a listing in a new category. If so, it’s probably time for the idea.
Evidence of this can be seen in a number of smaller ETF sponsors, including InvescoIVZ, WisdomTree and Valkyrie Investments, who quickly followed BlackRock by proposing their own spot Bitcoin funds. Spot market ETFs could boost demand for bitcoin by offering the convenience of stock trading to investors who are hesitant to engage in cryptocurrency wallets, seed phrases and hacker risks. Collective investment funds run by professional managers may run counter to the individualistic philosophy of many early digital asset buyers (who follow the slogan “not keys, not crypto”), but it is There was no stopping this week’s rally.
Another move that has supported the market is institutional cryptocurrency exchange EDX Start of business. Backed by traditional financial giants such as Charles Schwab, Citadel, Fidelity and Sequoia Capital, the exchange offers trading in his four cryptocurrencies: Bitcoin, Ether, Litecoin and Bitcoin Cash. I’m here. The company differs from its more established competitors in that it operates under a non-custodial model that prohibits ownership of listed assets.
“Despite the tough SEC, many of the largest companies in the US financial services pantheon still appear to be very bullish on cryptocurrencies. They are planning new spot ETFs and investing in ecosystem infrastructure. said Bradley Duke, Co-CEO of ETCETC Group.About cryptocurrency products traded on European exchanges forbes on mail. “This has had the effect of boosting investor sentiment.”
The improved outlook comes after an early June crackdown on two major cryptocurrency exchanges, Binance and Coinbase. The SEC has filed civil charges against both operating as an unlicensed exchange and listing cryptocurrencies deemed unregistered securities, as well as a “multi-step plan to covertly circumvent U.S. law.” Binance was accused of being involved.
While the questions of which cryptocurrencies are securities and which are commodities and whether single currencies can exist at different times remain unresolved, Bitcoin is out of the reach of the SEC. seems to be in
In the days following the lawsuit, cryptocurrency prices fell, with the market value reaching a low of about $1.06 trillion on June 13th. BlackRock news on June 15 sparked a backlash that gained momentum this week.
Bitcoin Cash was the biggest gainer in the current surge, rising 31% on Friday and 66% for the week. Greg Moritz, co-founder of crypto hedge fund Ortav Capital, said the company’s inclusion as one of the first EDX-listed stocks was a catalyst for the rally. forbes on mail.
“The recent launch of the institutional exchange EDX has put Bitcoin Cash in the limelight. Therefore, traders are expecting a significant inflow of institutional money into BCH, which has led to a surge in open interest, but so far the long-term outlook is It was a pretty dark project.”
Bitcoin Cash is built on the same blockchain as Bitcoin, but can process transactions faster. This makes it faster and cheaper to use, but may come at the cost of security.
The fourth currency listed on EDX, Litecoin LTC (a bitcoin derivative, like Bitcoin Cash), rose 5.4% on Friday and rose 19% for the week.
On Wall Street, cryptocurrency mining stocks posted a notable rally. Marathon Digital is up 7.4% during the day and 27% over the week, while Hive Blockchain is up 7% (29%) and Hat8 Mining is up 5% (27%).
coin base It recorded a daily gain of 6.9% and a weekly gain of 11%. It is also 4.7% above the level before the SEC lawsuit was announced on June 6.
Send me your safety tips.
