BlackRock (NYSE:BLK) Seeks Spot Bitcoin ETF, Bitcoin, Ethereum, and Dogecoin Experience Surge
Major cryptocurrencies experienced a brief surge in value on Thursday following the news that BlackRock’s iShares unit had filed with the SEC to launch a spot Bitcoin exchange-traded fund (ETF). The proposal, if approved, would allow investors to gain easy access to Bitcoin through a product offered by one of the largest players in finance.
Bitcoin, which had dropped below $25,000 on Wednesday, saw a 1.78% increase in value, reaching $25,522. Other major cryptocurrencies also saw gains, with Ethereum rising by 0.95% to $1,664, and Dogecoin increasing by 2.83% to $0.061.
The filing by BlackRock stated that the proposed iShares Bitcoin Trust would offer a simple means of investing in Bitcoin without directly acquiring, holding, and trading the cryptocurrency. This move by BlackRock comes at a time when major altcoins have been struggling, with Tether’s USDT stablecoin losing its $1 peg.
The global cryptocurrency market capitalization stood at $1.03 trillion at the time of writing, representing a 0.81% increase over the last day. On the other hand, the US stock market demonstrated a bullish trend, with the S&P 500 and Nasdaq Composite both experiencing significant gains.
Crypto analyst Edward Moya expressed mixed sentiments about the current state of the crypto market, noting that regulatory uncertainties and potential securities designations for certain cryptocurrencies could make it difficult for the market to rebound from recent lows. However, other analysts, such as Michael Van de Poppe, remain optimistic about future gains in the market, indicating that crypto is in the depression stage of the cycle but is poised for further upward movement.
In addition, veteran trader Peter Brandt warned that Bitcoin may be on the verge of a significant downward move, pointing to downward trends in moving averages as indicators. He suggested a cautious approach to Bitcoin at this time.
Overall, the news of BlackRock’s ETF filing provided a momentary boost to major cryptocurrencies, but market sentiment remains mixed due to regulatory concerns and technical indicators suggesting potential downward movement.