Hopes surrounding a possible US deposit of a Bitcoin ETF by investment giant BlackRock spurred a slight change in market action early Friday, leading to bullish expectations among some traders.
On Thursday, CoinDesk reported that BlackRock plans to offer a Bitcoin ETF with cryptocurrency exchange Coinbase serving as custodian. This was later confirmed after a filing showed that the company’s iShares fund management unit had filed papers to form a Bitcoin (BTC) spot ETF.
An estimated 20% of Americans will now own bitcoin at some point. “BlackRock’s proposed ETF likely offers an option for the other 80% that is more familiar,” Sui Chung, CEO of CF Benchmarks, said in an email to CoinDesk. and accessible.” “BlackRock’s growing participation shows that Bitcoin continues to be an important asset for some of the largest financial institutions in the world.”
Bitcoin quickly reclaimed the $25,500 level early on Friday, erasing losses from the past two days when it fell as low as $24,860. The move provided some relief to major tokens like Polygon Network’s MATIC and Cardano’s ADA, which nominally jumped in to mitigate some losses from the two-day slide.
Dogecoin (DOGE) led the gains among the major tokens with a move of 4% over the past 24 hours, with Litecoin (LTC) up 3.3%.
As such, the market strength of bitcoin has impacted shorts – or bets against – the asset which has seen futures tracking BTC more than $16 million in short liquidations over the past 24 hours. This number was lower than usual due to the large declines in the past week, which caused some traders to risk less capital than usual.
The SEC has previously rejected other attempts by fund managers to list a bitcoin spot ETF, including those from Grayscale, VanEck, and WisdomTree.
However, BlackRock’s prestige may make it difficult for the SEC to deny this request – which it does Some say It could fuel a huge rally in bitcoin if approved.
“Web maven. Infuriatingly humble beer geek. Bacon fanatic. Typical creator. Music expert.”