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Representations of the cryptocurrency Bitcoin are shown in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
Dice rovich | Reuters
Cryptocurrency prices rose to end the week on Friday, a day after the world’s largest asset manager entered the race to launch the first ETF in the United States.
bitcoin It was last up 4% at $26,438.00, according to CoinMetrics, while ether It advanced 3%, to $1,718.06.
Even altcoins have risen, with tokens pegged to them Solana And Cardano earning 4.5% and 2%, respectively. Binance coin was 2.75% higher, litecoin 3% profit, Uniswap token offers 4%.
For the week, Bitcoin is on track to finish just below the flat line, while Ether is on track for a 6% loss.
Bitcoin (BTC) this week
Investors have been weighing the latest developments in the crypto industry’s battle with the Securities and Exchange Commission for regulatory recognition and guidance. After the bell on Thursday, BlackRock – the world’s largest asset manager – applied for a Bitcoin spot ETF, with Coinbase as the crypto-guardian.
“One of the big purposes that bitcoin serves as an asset class is really diversification. It has a different risk profile than traditional financial markets,” said Gustavo Schwenkler, assistant professor at Santa Clara University’s Levy School of Business. “If this is approved, I can expect more institutional investors adding bitcoin to their portfolio investments… that would institutionalize the market in a way that isn’t possible at the moment.”
If allowed to proceed, the iShares Bitcoin Trust will become the first authorized ETF in the US to track the price of bitcoin, against futures contracts linked to the cryptocurrency. It’s been about 10 years since the first potential Bitcoin ETF deposit was made. Since then, every application that has passed through the SEC has been denied.
The filing comes about a week after the SEC sued its cryptocurrency custody partner, Coinbase, for violating securities laws, leaving many to wonder about the timing of BlackRock’s enforcement.
“This clear commitment to Coinbase is almost as important in the near term as their commitment to bitcoin is in the long term,” said Mark Connors, head of research at 3iQ. “It’s a big deal.”
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