Bitcoin Registers More Than 1-Year High As It Rises Above $30,000 Mark

Just a few days after BlackRock's filing, Bitcoin has gained nearly 25 per cent in value. Before this, Bitcoin registered over $31,000 in gains only in June 2022.

The Bitcoin gains were recorded just a few days after the world's largest asset manager BlackRock applied for a spot to create Bitcoin exchange-traded fund (ETF) despite heightened U.S. regulatory scrutiny on the digital asset sector in recent times.

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Bitcoin, the world's largest cryptocurrency registered more than one-year high on Friday. Its price remained above $30,000 on early Saturday morning as per the CoinMarkepCap at the time of writing. In terms of percentage-wise performance, BTC gained about 2.1 percent over the past 24 hours, reported CoinDesk. The latest rise roughly accounts for 20 percent over the past week. Before this, Bitcoin registered over $31,000 in gains only in June 2022. The gains were recorded just a few days after BlackRock, the world's largest asset manager, applied for a spot to create Bitcoin exchange-traded fund (ETF) despite heightened US regulatory scrutiny on the digital asset sector in recent times.

Last week, BlackRock filed to launch iShares Bitcoin Trust. It is an ETF that will ensure Coinbase Custody as its custodian as well as offer institutional investors exposure to the cryptocurrency, reported Reuters.

After BlackRock's filing, Bitcoin has gained nearly 25 per cent in value. 

Meanwhile, Crypto exchange EDX Markets, which is supported by investment agencies such as Charles Schwab, Fidelity and Citadel Securities too said they will start trading on some of the cryptocurrencies. Such announcements and the latest rise in Bitcoin's value have once again revived investors' interest in cryptocurrencies.

This is a significant sign of change in the industry, which has been in several problems after a series of crypto firms such as FTX collapsed earlier.

Increasing negative sentiment has also led to an increased amount of regulatory scrutiny, including the US Securities and Exchange Commission's (SEC) move this month to sue crypto giants Coinbase Global (COIN.O) and Binance. It had alleged the violation of its rules. However, both the firms have so far denied the allegations, reported Reuters.

Kate Laurence, the general partner of Bloccelerate VC, which invests in crypto projects, said, as quoted by the agency, "The dark clouds overshadowing crypto have lifted in recent days amid a burst of institutional interest."

Laurence further said, "The likes of BlackRock, Charles Schwab, Fidelity and Citadel throwing their hats into the crypto ring is hugely significant because it shows that institutions are very serious about the space - despite the recent regulatory crackdown."

Meanwhile, some experts earlier said the SEC's crackdown on the industry could be good for Bitcoin. This is because BTC is generally considered a commodity rather than a security, which keeps it beyond the SEC's remit.

CEO of Digital Asset Research Doug Schwenk, said, "The SEC lawsuit has created opportunities for robust, regulated players, so I'm cautiously optimistic that this BlackRock event will have some sustainability," as quoted by Reuters.

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