The most popular cryptocurrency in the world, Bitcoin, has increased 20% in 11 days, reaching two-month highs of $30,182. News has it that the cause of this price increase is linked to BlackRock, the biggest asset manager in the world’s plans to introduce a spot bitcoin Exchange Traded Fund (ETF) in the United States.
The percentage of Bitcoin was about 40% at the beginning of the year, up from a low of 34% in 2018. The cryptocurrency, however, has experienced a lot of volatility recently, with its value sharply declining. Some cryptocurrency proponents now have reason to be optimistic about the future of digital currency after hearing that BlackRock is interested in developing a Bitcoin ETF.
The hope that a cryptocurrency ETF would one day be approved by the Securities and Exchange Commission (SEC) is fueled by BlackRock’s solid track record of obtaining SEC clearance for ETFs. Recall that BlackRock submitted a potential proposal for a spot Bitcoin ETF on June 15th, despite the SEC rejecting every prior application. The business seems unfazed by the SEC’s previous denials and continues with its ambitions.
Futures-based ETFs are the only option for American investors who want to participate in cryptocurrencies on stock markets. Instead of tracking the price of bitcoin itself, these ETFs follow the price of bitcoin futures contracts. Launching a spot Bitcoin ETF would let investors invest directly in Bitcoin, increasing the popularity of the digital currency.
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Attention Shifts To Bitcoin, As Mixed Feelings Thrills The Market
The cryptocurrency market has benefited from the news that BlackRock is interested in creating a Bitcoin ETF. Over the past few days, the value of other cryptocurrencies like Ethereum and Dogecoin has also increased. From a low of $1.2 trillion earlier in the month, the market value of the entire cryptocurrency market has risen to $1.4 trillion.
Despite its recent price increase, Bitcoin is still well below its April all-time high of about $65,000. Cryptocurrency has come under much attention recently, especially its effects on the environment and its use for nefarious purposes. Many cryptocurrency enthusiasts, though, are still upbeat about the direction of virtual money.
According to Bloomberg’s Katherine Greifeld and Olga Kharif, launching a spot bitcoin ETF might completely alter the cryptocurrency market. They added that many potential new investors have been reluctant to engage directly in Bitcoin due to the need for a regulated investment vehicle. This might result in more people using Bitcoin, enhancing its value.
Bitcoin traders are wary of the implications that a Bitcoin ETF could have. Some are concerned that it would cause the market to become more speculative and volatile. Concerns exist over the risk of manipulation and the potential for a regulatory crackdown on Bitcoin.
Market Still Skeptical About BTC Future Despite ETF Development
The revelation of BlackRock’s interest in a spot bitcoin ETF has significantly impacted the cryptocurrency market.
The SEC’s decision on BlackRock’s application is still uncertain, but the announcement has given many investors cause for optimism about the future of the virtual currency. The Bitcoin market responded to the development skeptically, with few changes in its market activities.
As of press time, the price of BTC is $30,559.47 and has displayed a mere 0.49% price change in the last 24 hours. The price adjustment has led to a $593,267,786,956.82 market capitalization, summing up the total difference in the price to 85.18% since the beginning of the year. Data from BitAccording predicted Bitcoin price to ‘crawl’ to $30,852 by July 2nd, 2023: a 0.16% increase in the coin’s value.
Meanwhile, the latest technical indicators obtained from CoinCodex rated the recent sentiment as Bullish, leaving the Fear & Greed Index at 59 (Greed). Investigation into the market development revealed that the BTC is currently showing a 5.83% volatility in price over the past 30 days, officially establishing a buying trend for traders.