Since the existence of the world of crypto, Bitcoin has demonstrated noteworthy performance. Gaining momentum over the past week, the renowned digital currency is poised to mark one of its most robust weeks this year, according to Bloomberg.
This uptick is largely influenced by speculative hopes around exchange-traded funds (ETFs) potentially unlocking new demand avenues for Bitcoin, the largest crypto asset.
Despite the slight decline today, BTC remained resilient, positioned for an 18% weekly gain – the highest since March. This comes amid relative calm in smaller altcoins such as XRP, Cardano, and Solana. This upward trend in Bitcoin’s value is largely driven by whispers of new avenues for mainstream institutional involvement.
Proposed Bitcoin ETFs Fuel Market Optimism
The influence of institutional interest in Bitcoin cannot be understated, as June 15 saw BlackRock Inc., the world’s most prominent asset manager, make an unexpected filing with the Securities and Exchange Commission (SEC) proposing the establishment of ETFs investing in spot BTC.
Although the SEC has previously resisted such proposals, the might of BlackRock’s backing offers new hope for the success of Bitcoin ETFs.
Vetle Lunde, a senior analyst at K33 Research stated:
The potential approval of Bitcoin ETFs could have a profound influence on the Bitcoin market structure by reducing barriers for financial advisors to provide exposure to the [Bitcoin] token.
Financial Giants Embrace The Crypto Future
Further bolstering crypto optimism, the launch of EDX Markets, a digital-asset exchange supported by esteemed traditional finance giants such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp, has joined the charge. Such commitment from recognized financial entities signifies an acceptance and future in the crypto market.
The industry’s buoyant mood continues to override lingering concerns about last year’s $1.5 trillion downturn, regulatory clampdowns, and controversial incidents like the bankruptcy of the FTX exchange following fraud allegations.
Despite these adversities, experts like Matt Hougan, Chief Investment Officer at Bitwise Asset Management Inc., hold a positive long-term view of the crypto space.
While the crypto community pays heed to warnings from central banks regarding increased interest rates and potential financial-market liquidity squeezes in the bid to control inflation, the overall narrative is increasingly becoming crypto-centric.
Noelle Acheson, the author of the ‘Crypto Is Macro Now’ newsletter commented:
We’re witnessing a substantial narrative shift. It’s becoming more crypto-specific, and that is a positive development on many fronts.
Notably, this shift and the unfolding dynamics point towards a more inclusive and promising landscape for BTC and the broader cryptocurrency realm.
Featured image from iStock, Chart from TradingView