The price of bitcoin enjoyed a renewed rally overnight as more spot ETF applications fueled a sentiment boost. The benchmark cryptocurrency is up 8.07% today, trading hands just above $29,000.
Bitcoin Price Gathers Upside Traction
Crypto’s largest cryptocurrency by market cap is back in vogue.
Bitcoin briefly hit $29,000 on June 21 before cooling off a little. BTC now trades at $29,051.25, according to CoinGecko data. The top crypto looks set to explore a move toward $30,000 levels in the near term.
Ethereum (ETH) was also in the green, notching a 4.9% daily increase. Cardano’s ADA — which recently underwent a significant software upgrade — rallied 8.1%, posting one of the biggest single-day gains this month.
Meanwhile, the global crypto market capitalization was sitting at $1.18 trillion — up 5.9% from the previous day.
The biggest factor behind the crypto rally is likely the wave of new Bitcoin ETF filings.
WisdomTree, Invesco Quickly Following BlackRock
Hopes surrounding a potential physical bitcoin exchange-traded fund (ETF) by investment giant BlackRock fueled a bullish sentiment among traders last week. Two new U.S.-based investment firms have now submitted applications to the Securities and Exchange Commission (SEC) for investment vehicles tied to the OG cryptocurrency.
A bitcoin ETF is a product that tracks the crypto’s value, seeking to expose investors to BTC’s price performance without needing them to own and hold the underlying asset directly. This means investors can buy shares of the ETF, which symbolize ownership of a pool of Bitcoin held by the fund, instead of buying and storing the leading crypto.
New York-based asset manager WisdomTree asked that the SEC allow it to list its “WisdomTree Bitcoin Trust” on the Cboe BZX Exchange under the ticker “BTCW in a June 20 filing. The company has previously made two attempts to get approval for a spot Bitcoin ETF. Its first application was rejected by the SEC in December 2021, while the second application was denied in October 2022 for insufficient investor protection.
Atlanta-based investment management firm Invesco also reapplied for a bitcoin ETF in light of BlackRock’s filing. In the Tuesday application, Invesco requested that the top American financial regulator allow its “Invesco Galaxy Bitcoin ETF” product to be listed on the Cboe BZX exchange. The filing argues that the lack of a spot Bitcoin ETF “exposes U.S. investor assets to significant risk” as they “are forced to find alternative exposure through generally riskier means.”
In addition to the new applications from WisdomTree and Invesco, rumors that the multi-trillion-dollar fund manager Fidelity Investments may also be looking to take advantage of the enlivened craze for spot Bitcoin ETFs have begun swirling.
The SEC has in the past repeatedly squashed all efforts to launch a spot Bitcoin ETF. The flurry of new filings triggered by BlackRock’s application last week can indicate asset management behemoths recognizing the increasing demand for regulated investment products in the cryptocurrency market.
The jury’s still out on whether this changes the SEC’s outlook on the subject.