The price of bitcoin has experienced a significant increase and currently stands above $28,700, although it is still far from its highs during the COVID-19 pandemic. According to Bloomberg reports, this rally is due to a number of promising initiatives by major players in the traditional financial sector.
In particular, BlackRock, the world’s largest asset manager, has filed an application with the US Securities and Exchange Commission (SEC) to create a bitcoin spot exchange-traded fund (ETF). This initiative has generated positive expectations in the market. WisdomTree, for its part, has also applied to the SEC to launch a bitcoin ETF. Although in the past the SEC has shown reluctance towards these types of funds, it is expected that BlackRock’s influence and track record of approvals may change the response.
In addition to these filings, there are other significant moves in the digital market. EDX Markets, backed by Wall Street firms such as Citadel Securities, Fidel Digital Assets, and Charles Schwab, has launched operations as a new cryptocurrency exchange. Institutional demand is supporting this upturn, as participation from traditional institutions is expected to bring greater depth to the cryptocurrency market.
In Europe, Germany’s Deutsche Bank has applied for a license to operate as a digital asset custody service, indicating increased interest and participation in the sector.
These developments have helped to allay some of the concerns generated by SEC lawsuits against cryptoasset exchange platforms Binance and Coinbase for alleged securities law violations.
Despite recent gains, bitcoin is still far from the levels reached during the COVID-19 pandemic. Although it has experienced a significant rally and generated positive expectations, it is still below its previous highs.