Bitcoin’s performance has been notable since the advent of the crypto world. Bloomberg reports that the digital currency has gained momentum in the last week and is set to have one of the strongest weeks of the year.
This increase is mostly a result of speculative expectations that exchange-traded fund (ETFs), the biggest crypto asset, could unlock new demand avenues.
BTC, despite the slight drop today, is still poised for a weekly gain of 18% – the biggest since March. It comes at a time of relative calm for smaller altcoins like XRP Cardano and Solana. This upward trend is driven largely by whispers about new institutional avenues.
Market optimism is fueled by proposed Bitcoin ETFs
The impact of institutional interest on Bitcoin cannot be underestimated. On June 15, BlackRock Inc. the world’s largest asset manager made an unexpected filing to the Securities and Exchange Commission. This proposal was for the establishment of ETFs that invest in spot BTC.
The SEC had previously rejected such proposals. However, BlackRock’s support offers a new hope that Bitcoin exchange-traded funds will be successful.
Vetle Lunde is a senior analyst with K33 Research.
The approval of Bitcoin ETFs may have a profound impact on the Bitcoin market by reducing the barriers that financial advisors face in providing exposure to [Bitcoin] tokens.
Financial Giants embrace the Crypto Future
launched EDX Markets a digital asset exchange that is supported by prestigious traditional finance giants like Citadel Securities and Charles Schwab Corp. This commitment by recognized financial institutions signals an acceptance of the crypto market and its future.
The industry’s positive mood continues to outweigh lingering worries about the $1.5 trillion drop in the stock market last year, regulatory crackdowns and controversial incidents such as the bankruptcy of the FTX Exchange after fraud allegations.
Experts like Matt Hougan of Bitwise Asset Management Inc. have a long-term positive view on the crypto space.
The crypto community is aware of the warnings issued by central banks about increased interest rates, and possible liquidity shortages on the financial markets in an effort to control inflation. However, the narrative has become increasingly crypto-centric.
Noelle Acheson is the author of ‘Crypto Is Macro Now,’ a newsletter.
We are witnessing a significant narrative shift. It is becoming more crypto-specific and this is a good development in many ways.
This shift in dynamics and its implications point to a more inclusive, promising and open landscape for BTC as well as the wider cryptocurrency world.