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Spot Bitcoin ETF Filings Spark Optimism as Bitcoin Surges Above $30,000

Bhushan AkolkarBy 0Edited by John Kiguru 22. June 20233 Mins Read
  • Bitcoin (BTC) experiences a significant surge, surpassing $30,000 levels amid the spot Bitcoin ETF filings by multiple financial giants.
  • The entry of traditional financial players into the cryptocurrency market, along with positive remarks from Federal Reserve Chairman Jerome Powell on stablecoins, contributes to the current rally.

The world’s largest cryptocurrency Bitcoin (BTC) continues on its strong upward momentum gaining another 5 percent and shooting past $30,000 levels in the last 24 hours. As of press time, BTC is trading at $30,107 with its market cap at $585 billion.

BlackRock’s application of a spot Bitcoin ETF last week has triggered the recent price rally in Bitcoin. Following BlackRock, a number of other financial giants also filed with the US SEC, for a spot Bitcoin ETF. This includes the likes of WisdomTree, Fidelity, Bitwise, and Valkyrie.

All these filings have fueled further optimism among Bitcoin investors triggering the current price rally. In addition to the price breakthrough, there has been a significant rise in Bitcoin Network activity. According to data from The Block, the number of transactions increased from 385,000 on June 14 to 435,000 on June 20, marking a 13 percent growth. This surge in activity coincides with asset manager BlackRock’s recent filing for a spot bitcoin ETF.

In an email to CoinDesk, Nihar Neelakanti, the CEO and co-founder of carbon-backed digital collectibles Ecosapiens, wrote:

There is a wave of optimism in the crypto market now that big institutional players are working to take part in the industry in a big way. These players, among other big names, are obviously going to add a lot of liquidity to the market and make investors more confident to buy bitcoin again. And big institutions partnering with crypto are going to continue to be a catalyst for bitcoin for the foreseeable future, even as the U.S. regulatory situation continues to cause some hardship for the industry.

The TradFi Push Into Crypto and Fed Chair on Stablecoins

The recent push by traditional financial (TradFi) players into cryptocurrencies has been the reason behind the current crypto market rally. Some market analysts believe that TradFi’s participation in crypto will completely restructure the market, with more investors having access to digital assets.

Ruslan Lienkha, chief of markets at Web3 crypto and fiat service provider YouHodler said: “It seems that the crypto market is going to be completely restructured in the country by the biggest investment firms in the near future. More investors will have access to crypto investments with much lower risks. Important to notice that a very small percentage of BlackRock or Fidelity clients interested in spot BTC ETFs are enough to move the price further north.”

On the other hand, the commentary on stablecoins by Fed Chairman Jerome Powell brought some optimism to the market. Powell said that he does identify stablecoins as a form of payment.

The Fed Chairman argued the need for strong central bank oversight on stablecoin regulations. In his testimony on the monetary policy, Powell added: “We do see payment stablecoins as a form of money, and in all advanced economies, the ultimate source of credibility in money is the central bank. We believe it would be appropriate to have quite a robust federal role.”
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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

Bhushan is a FinTech enthusiast and possesses a strong aptitude for understanding financial markets. His interest in economics and finance has drawn his attention to the emerging Blockchain Technology and Cryptocurrency markets. He holds a Bachelor of Technology in Electrical, Electronics, and Communications Engineering. He is continually engaged in a learning process, keeping himself motivated by sharing his acquired knowledge. In his free time, he enjoys reading thriller fiction novels and occasionally explores his culinary skills. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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