BlackRock’s Bitcoin ETF Sparks Market Rally as Institutional Interest Grows

BlackRock’s Bitcoin ETF filing sparked life back into the market, causing a sharp rally as investors eagerly await the SEC’s decision. One Coinbase custodial wallet recorded its BTC stash surged by 2500, according to data from memepool.space.

Institutional investors can keep significant amounts of tokens, including bitcoin, in a secure wallet thanks to Coinbase Custody, a service provided by the cryptocurrency exchange.

Unlike a hot or cold wallet, a custodial wallet is where private keys are held by a third party. The most common type of custodial wallet is an exchange wallet, where the exchanges have private keys on behalf of their users.

In this case, the sender might be a large player. Further analysis of the data reveals that between May 19 and May 20, more than 5,000 bitcoin were deposited into the wallet.

Over the past week, trading volumes on Coinbase have almost doubled amid a 20% price surge on Bitcoin. According to the data, the exchange traded more than $2 billion worth of tokens in a span of 24 hours, surpassing the daily average of $1 billion since June 1st.

Callie Cox, investment analyst at eToro, believed that digital assets have rebounded after “going through a crisis of confidence,” thanks to a spurt of ETFs filed by some of the biggest fintech powerhouses.

Bitcoin’s Market Cap Dominance Is Above 50%

Bitcoin’s total market cap crossed above 50% on June 19, for the first time in months, retaining its market dominance.

The latest to jump on the bandwagon is $1.5 trillion asset manager Invesco, which dropped its 19b-4 application for the second time after a similar filing back in the fall of 2021.

Another leading AUM WisdomTree also filed permission to list its “WisdomTree Bitcoin Trust” on the Cboe BZX Exchange under the ticker “BTCW.”

The filings have generated great interest in the crypto community, with many speculating on the effects on the market.

“A wave of optimism is currently sweeping the cryptocurrency market,” according to Nihar Neelakanti, CEO and co-founder of carbon-backed digital collectibles Ecosapiens. “Big institutional players are working to take part in the industry in a big way,” he added.

There were also rumors about Fidelity filing an ETF. But a spokesperson informed that the firm had not made any public announcements on its intentions to register.

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