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Bitcoin already accounts for almost half of the ‘crypto’ market after BlackRock’s plan

Date: June 22, 2024 Time: 16:25:27

The cryptocurrencies live a 2023 full of shocks. June has not been the exception. The siege by the United States Securities and Exchange Commission (SEC) of two of the main platforms in the sector -Binance and Coinbase- has affected the price of these digital currencies, which now seems to be beginning to recover. the tone. Within the framework of this apparent calm, bitcoin channels most of the attention… and investment. The king of the ‘crypto’ already concentrates more than 48% of the market share, after rising by two percentage points in the last three weeks and more than eight points since the start of the year.

The jump to this strip has taken place in recent days in the heat of Blackrock’s plans. The largest asset manager has surprised the market with its claim to launch the first bitcoin index fund. Pending the green light from the SEC, he intends to list iShares Bitcoin Trust (the name of the ETF) on the Nasdaq. “It’s not the first financial institution to do this, and unlikely to be the last, but it may have a better chance than other smaller entities of overcoming regulatory hurdles,” says eToro crypto analyst Simon Peters.

The thirtieth attempt, according to data from ‘Bloomberg Intelligence’, to launch a product to trade cryptocurrencies in the market occurs mainly to the detriment of other assets such as tether, the third most relevant currency, which cuts around half a share point, up to 7.8%, as well as other retail currencies, while ethereum, the second most relevant currency, remains stable at 19.4% on Monday compared to June 15, the day of the announcement.

Despite this, bitcoin is still far from the quota reached at the beginning of 2021, when it accounted for more than 71% of the market. Since then, ‘crypto investors’ have chosen to diversify. In addition to those mentioned, another relevant part of the pie is shared between BNB (3.5%), USD Coin (2.6%), XRP (2.4%), Cardano (0.85%), Dogecoin (0. 81%), TRON (0.59%). ) and Solana (0.58%). The remaining 13% is distributed among other secondary currencies.

One of the main doubts regarding this initiative is whether a spot ETF has the potential to move this market. In this regard, Peters believes that the ability of a giant like Blackrock would help “unlock huge amounts of liquidity in bitcoin.” Contributing to give oxygen to bitcoin, which is already trading in the range of the trillion dollar barrier in capitalization (1.06 trillion), which was about to lose last week. Since the start of the year, it has rebounded by almost 60%.

“The index fund could change the rules of the game and consolidate this cryptocurrency as an investment asset,” defends James Seyffart, ETF analyst at ‘Bloomberg Intelligence’, who calls for taking Blackrock’s entry into the sector seriously , despite the fact that, for now, its success is not assured. The expert recalls the “long history” of the SEC to reject applications under the lack of regulation of bitcoin. Before Larry Fink’s firm, Cathie Wood’s American company, ARK, has already tried it up to three times, jointly with 21Shares. The last one was a little less than two months ago.

On the run from Grayscale

Going a little deeper into the matter, Seyffart believes that the colossus of investment funds does not want to be left behind before the possibilities of Grayscale, the largest bitcoin investment fund in the world, of winning the lawsuit it has with the SEC after its negative to convert fund Grayscale Bitcoin Trust (GBTC). It should be remembered that Blackrock joined forces with Coinbase a few months ago to offer bitcoin to institutional investors. In this sense, the Manhattan-based manager has proposed that the platform founded by Brian Armstrong be the custodian of the bitcoins of the new proposed vehicle.

The SEC denounced Coinbase a few weeks ago for operating as an unregistered securities agency, in addition to not registering its crypto asset service. However, it is not their only confrontation, since the digital currency exchange company has criticized this body for the delay in responding to its request to promote a regulatory framework for digital assets and not offering a “clear” answer about the time that you need to make a decision on the matter, which is why they have appealed to a federal court, and everything indicates that they will face each other for a while.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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