22-6-2023 (LONDON) Bitcoin has rallied for a third consecutive day, reaching its highest level since mid-April, following BlackRock’s announcement of plans to create a Bitcoin exchange-traded fund (ETF), despite ongoing US regulatory scrutiny of the cryptocurrency sector.
BlackRock, the world’s largest asset manager, filed for the exchange last week, which would allow investors to obtain stakes in Bitcoin. EDX Markets, a crypto exchange backed by Citadel Securities, Fidelity and Schwab, has also reportedly begun operations, according to The Wall Street Journal.
The global cryptocurrency industry has been under the scrutiny of US securities regulators over alleged violations of securities laws. Earlier this month, the US Securities and Exchange Commission (SEC) sued major crypto exchanges such as Coinbase and Binance.
Bitcoin, the world’s largest and most well-known cryptocurrency, is up around 81% for the year-to-date, with an increase of roughly 5.5% on Wednesday, reaching $29,881.00 after hitting a high of $30,755.00.
Edward Moya, a senior market analyst at OANDA, stated that “it started with BlackRock’s Bitcoin ETF filing and now others are following,” adding that “who needs regulatory clarity if you see BlackRock making a move?” However, he cautioned that the sector needs to “hear good news from the SEC to see a sustained rally target in the mid-US$30,000 region”.
Meanwhile, Ether, the coin linked to the ethereum blockchain network, rose 4.8% to US$1,877.70. As the cryptocurrency industry continues to face regulatory scrutiny, the impact of BlackRock’s move into the sector remains to be seen.
