With Wall Street’s support, Bitcoin, supposedly to destroy the financial system, has recovered from weeks of illness.
After BlackRock, the world’s largest asset manager indicated an interest in a spot bitcoin exchange-traded fund (ETF) in the U.S., the original cryptocurrency soared 20% to $30,182.
Despite the SEC’s history of rejecting such applications, BlackRock sought a Bitcoin ETF space on June 15. Two weeks after the news, Bitcoin recovered.
Satoshi Nakamoto’s rebel child is enthusiastic about an ETF that lets investors spot bitcoin on a regulated U.S. stock exchange without custody.
CoinMarketCap.com claims that Bitcoin’s market value now accounts for over half of the $1.1 trillion crypto market, its highest share in over two years. At the start of 2019, its ownership was 40%, up from 34% in 2018.
“The news of the ETF filing is evidence of adoption and interest from top global players, which is, of course, interesting to institutional investors and traders alike,” said Mikkel Morch, chairman at digital asset investment firm ARK36.
Crypto proponents are enthusiastic about BlackRock’s track record of SEC clearance for ETFs, even if it hasn’t filed for a crypto ETF. Andrew Bond of Rosenblatt Securities claims a 575-1 approval rate.
Invesco and WisdomTree have reapplied for spot bitcoin ETFs since BlackRock’s proposal.
After the SEC sued prominent crypto exchanges Coinbase and Binance for securities violations, the U.S. watchdog received a mini-rush of suggestions.
Not everyone wants in. Equity and bond constraints are known to you. Cherry Lane Investments partner Rick Meckler said, “But you don’t fully know the rules for crypto.”
“Many people, including myself, struggle with investment classes.”