Cryptocurrencies are witnessing a bullish momentum in the last seven trading sessions, bouncing off nearly 20% from monthly lows and hitting two-month highs on the back of speculation that BlackRock Inc, the world’s largest asset manager, applied for an ETF (Coinbase will be the custodian) that will directly track Bitcoin. https://www.businessinsider.com/blackrock-spot-bitcoin-etf-crypto-reactions-2023-6
Blackrock became the latest and the largest institutional investor that applied for Bitcoin ETFs, following similar applications from other asset managers including WisdomTree, Valkyrie, and Citadel earlier this year.
In this bullish context, the world’s largest cryptocurrency, Bitcoin, is now hovering above the key $30,000 psychological level for the first time since April, currently at $30,300, adding almost $6,000 a coin or nearly 24% since bottoming at $24,500 last Thursday.
BTC/USD, 4-hour chart
On the other hand, the world’s second-largest crypto, Ethereum, is also trading at the near key resistance level of $2,000, currently at $1,930, its highest since the end of May, adding almost $300 a coin or nearly 18% since bottoming at $1,630 last week.
Crypto investors have cheered the recent buzz around Bitcoin ETFs since asset managers and other institutional investors are important players in the crypto market, providing the necessary liquidity and market sentiment on the sector.
The resumed interest from institutional investors provides optimism on the decentralized crypto industry since institutional buying (together with retail investors & speculators) was one of the biggest catalysts of a 2021 crypto rally, which had pushed Bitcoin and Ethereum to record highs of $69,000 and $4,900 respectively.
However, since topping in early November 2021, all cryptos have been trading in a downward trend spiral to the current lows, following a series of bankruptcies in the crypto ecosystem and after SEC’s lawsuits against major exchanges Binance and Coinbase, forcing many institutional investors to pull out money from the sector. https://www.sec.gov/news/press-release/2023-101
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