The king of cryptocurrency rose to $42,420 hours ago and has been experiencing the same things since the $31,000 resistance. Tough resistances are suddenly being broken, and the price of Bitcoin is consolidating. Then another tough selling wall is unexpectedly collapsing. Investors seem to be convinced of a trend change as the recovery begins in altcoins.
Why are Cryptocurrencies Rising?
Which company makes the most noise globally when it buys cryptocurrencies or launches a product related to them? None of these big companies are as big as BlackRock, the asset management company. Moreover, most of the investors of these big companies also receive asset management services through BlackRock. The world’s largest asset management company, BlackRock, is trying to issue a spot Bitcoin ETF, although investors have not fully realized it yet.
We mentioned that nothing would be the same after the big news in June. And it happened, the price of Bitcoin is now above $41,400 today, and trillion-dollar asset managers are lining up for ETF issuance.
Financial institutions worth billions of dollars are issuing tokenized bonds on networks like Ethereum. Much more will be seen with confidence coming after the ETF approval. The main reason for the rise of cryptocurrencies is that the sound of institutional influx is now clearly heard from today.
BlackRock Spot Bitcoin ETF
The world’s largest asset manager, BlackRock, received its first seed investment in October, as reported in its recent SEC filing. The institution, which took action for the issuance of a spot Bitcoin ETF, sold 100,000 shares for $25.00 per share in exchange for 4,000 shares on October 27, 2023.
The initial funding allows for the creation of the underlying shares of an ETF that can be listed and traded on the open market. More importantly, this step tells us that ETF approval is now just a matter of time. The long-awaited news may come soon.
Bloomberg ETF analysts expect official approval announcements to come collectively by January 10.