Bitcoin crosses the $45,000 mark at the start of the year. A significant movement mainly attributed to the imminent arrival of a Bitcoin ETF and the influential role of BlackRock, the world leader in asset management.
BlackRock, the world’s largest asset managermanages a record portfolio of 10 trillion dollars. The company played a crucial role in the recent increase of the price of Bitcoin by submitting a request for the launch of a Bitcoin Spot ETF near DRY (Securities Exchange Commission), anticipating that it would attract institutional investment and would positively influence the market.
An ETF (Exchange Traded Funds), or exchange traded fund, is a financial instrument designed to replicate the evolution of an index. One of its main advantages lies in its reduced costs. They generally have lower management fees than traditional funds because they require less active management, automatically tracking an index. Additionally, ETF transactions take place directly on stock markets, which reduces transaction costs. These characteristics make them attractive to investors seeking efficient and cost-effective exposure to various markets or sectors.
Also read: Bitcoin, Ethereum and altcoins: why are the prices of cryptocurrencies soaring?
Bitcoin climbs to $45,000: the impact of BlackRock’s ETF demand
Bitcoin recorded a strong rise, crossing the threshold of $45,000, rebounding after the dramatic fall following the Terra-Luna crash in April 2022. Following this event, its founder, Do Kwon, was arrested in Montenegro. But this recent increase is largely attributed to the wait for approval of theBitcoin Spot ETF by SEC, particularly after BlackRock’s proposal. This company’s commitment to the Bitcoin ecosystem, particularly through its substantial investments in mining companies such as Riot Platforms Inc. and Marathon Digital Holdings Inc., has undoubtedly reinforced this anticipation. These actions indicate growing confidence among institutional investors in Bitcoin, fueling the rise in its value.
Approval imminent of the Bitcoin Spot ETF by the SEC, expected for January 2024 at the latest, has introduced new optimism to the cryptocurrency market. The introduction of this ETF, combined with BlackRock’s significant involvement in the Bitcoin sector, could mark a turning point for this cryptocurrency. It could not only make it more attractive to institutional investors, but also contribute to stabilize its value over the long term. This development is a sign of the growing integration of Bitcoin and cryptocurrencies in general in the global financial systemsuggesting a future where these digital assets play a regular and regulated in the global economy.
Source: Zdnet Korea