Bitcoin (BTC) is on track for one of its best weeks this year, driven by speculation surrounding the announcement of index funds (ETFs), which could bring new demand to the largest digital asset.
With a 13% weekly gain, the most since March, Bitcoin was trading around US$30,000 on Friday morning. However, smaller cryptocurrencies like XRP, cardano, and solana experienced a slight decline.
The surprise filing by BlackRock with the U.S. Securities and Exchange Commission (SEC) on June 15, along with other recent requests to create ETFs investing in Bitcoin, has ignited discussions.
While the SEC has been cautious in approving such funds, the involvement of the world’s largest asset manager has raised hopes for potential acceptance.
If approved, the impact on Bitcoin’s market structure would be significant, as it would lower barriers for investment advisors to recommend exposure to the cryptocurrency.
This development has been noted by industry experts, signaling a shift in the market.
Moreover, the launch of the EDX Markets digital asset exchange, backed by Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp., has further fueled optimism and indicates a growing interest from traditional financial players.
Despite recent negative regulatory news and concerns about cryptocurrency crackdowns, including the FTX exchange collapse, investors remain positive about Bitcoin’s long-term prospects.
They are focusing on the potential of new ETFs and the narrative shift in the crypto market, which is seen as a positive development.
The optimism has overshadowed recent comments from central bankers regarding higher interest rates and reduced market liquidity.
The current narrative surrounding cryptocurrencies is becoming more specific and favorable, according to industry observers.
Bitcoin’s strong performance this week reflects the growing anticipation of new investment avenues and increased institutional involvement, suggesting a positive outlook for the digital asset.