The largest cryptocurrency in the world, Bitcoin, hit a record high on Friday. Early on Saturday morning, according to CoinMarketCap, its price was still above $30,000. According to CoinDesk, BTC increased in value by around 2.1 percent during the last 24 hours. The most recent increase is almost a 20% increase over the previous week. Prior to this, only June 2022 had Bitcoin earn more than $31,000. The gains were made only a few days after BlackRock, the largest asset management in the world, submitted an application to establish a Bitcoin exchange-traded fund (ETF), despite recent increased US regulatory scrutiny of the digital asset sector.
BlackRock filed last week to introduce the iShares Bitcoin Trust. According to Reuters, the ETF would guarantee Coinbase Custody as its custodian and provide institutional investors with exposure to cryptocurrencies.
Following BlackRock’s submission, the price of Bitcoin increased by around 25%.
In the meantime, the cryptocurrency exchange EDX Markets, which has the backing of companies like Citadel Securities, Charles Schwab, and Fidelity, has also announced that it will begin trading in several cryptocurrencies. Investor interest in cryptocurrencies has once again been rekindled by such pronouncements and the most recent increase in Bitcoin’s value.
This is a big sign of change in the market, which has been having issues ever since a number of cryptocurrency companies, including FTX, earlier folded.
The US Securities and Exchange Commission (SEC)’s decision to sue crypto industry titans Coinbase Global (COIN.O) and Binance this month is just one example of the increased regulatory scrutiny brought on by rising negative sentiment. It had stated that one of its regulations had been broken. According to Reuters, both companies have thus far refuted the claims.
The agency quoted Bloccelerate VC general partner Kate Laurence as saying, “The dark clouds overshadowing crypto have lifted in recent days amid a burst of institutional interest.”
A subsequent statement from Laurence said, “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.”
Some experts had previously claimed that Bitcoin would benefit from the SEC’s crackdown on the sector. This is due to the fact that BTC is typically regarded as a commodity rather than a security, keeping it beyond the purview of the SEC.
Reuters quoted Doug Schwenk, CEO of Digital Asset Research, as saying, “I’m cautiously optimistic that this BlackRock event will have some sustainability. The SEC lawsuit has created opportunities for robust, regulated players.”