The crypto market is up today as the price of Bitcoin has rebounded to $30,000 and investors are becoming increasingly thrilled by the number of fresh BTC ETF applications.
The crypto market is up today, with Bitcoin $30,040 ETH $1,895 ADA $0.295 and a slew of altcoins rallying after many significant organizations, including BlackRock, registered for Bitcoin ETFs in the United States.
Bitcoin price topped $30,000 for the first time since April 18, extending a 36% year-over-year rise since China predicted BTC will reach zero in June 2022.
The rise prompted a wave of short liquidations across the market, reaching more than $173 million in the first 24 hours of trading on June 21. The surge in cryptocurrency prices is contributing to the narrowing of the appreciation gap between equities and the cryptocurrency market, which extended after the Federal Reserve suspended interest rate hikes.
Despite the strength of today’s surge, its endurance is in doubt as investors anticipate additional regulation from the US Securities and Exchange Commission. Because of the lack of bipartisan support for crypto regulation, it is unlikely that any meaningful legislation will be passed in the United States Congress, which means that many cryptocurrencies may be categorized as securities by the SEC.
The possibility of the first Bitcoin ETF approval in the United States aided the crypto market price. On June 16, the world’s largest asset manager, BlackRock, filed a Bitcoin spot ETF with the Securities and Exchange Commission.
Notably, BlackRock, an investment institution with $9.5 trillion in assets under management, has applied for 576 ETFs with only one rejection. According to market expert Lark Davis, an SEC license might result in the asset manager purchasing every single Bitcoin available on cryptocurrency exchanges. Davis made the following statement in the filing:
“Only about 10% of all Bitcoin [worth $50 billion] is sitting on exchanges. 0.5% of BlackRock money movings to BTC would buy every single coin available.”
Despite this, the SEC has rejected all Bitcoin ETF applications, including those from VanEck, Ark Invest, and Bitwise. WisdomTree is the most recent financial firm to file a new application for a spot Bitcoin ETF, which has previously been denied by the SEC. The first rejection occurred in December 2021, followed by another in October 2022. WisdomTree, a New York-based asset management firm, manages about $83 billion in assets. Invesco, another well-known asset management firm, has revived their application for a Bitcoin ETF on the Cboe platform.