The latest mini-rally in bitcoin peaked at $31,458 last Friday, and the cryptocurrency has been hovering above $30,000 ever since.
Analysts and crypto-enthusiasts have been quick to attribute the move to BlackRock filing an application with the SEC to launch a spot bitcoin ETF, along with the launch of a crypto exchange backed by investment firms Charles Schwab, Fidelity and Citadel Securities. In fact, in the last two weeks BlackRock, WisdomTree, Invesco, VanEck and Bitwise have all filed for spot bitcoin ETFs. On Tuesday, The Block reported that Fidelity is expected to file for one too, although the asset manager declined to comment.
People bought bitcoin on the idea that Wall Street would back it, analysts said. One idea is that a spot bitcoin ETF would make it easier for institutional investors and high-net-worth retail traders to get back into cryptocurrency. Another is that it would give people more confidence that they could get their U.S. dollars in and out of crypto, especially after the some of the banks that facilitated that (Silicon Valley Bank, Silvergate, Signature) collapsed earlier this year and as the leading exchange Binance stopped U.S. dollar deposits and withdrawals.
But, the SEC has so far not approved spot bitcoin ETFs. In recent years, it’s rejected dozens of such applications, citing concerns that the underlying bitcoin market could be manipulated. Analysts are looking at BlackRock’s track record of getting ETF applications approved for clues as to how likely it is this time round. In the meantime, the rally appears to be fizzling out and investors have still got U.S. regulations and more rate hikes from central banks to worry about.
Meanwhile, FTX founder Sam Bankman-Fried lost his bid to throw out most of the U.S. government’s criminal case accusing him of orchestrating a multibillion-dollar fraud. Bankman-Fried tried to get at least 11 of the 13 fraud and conspiracy charges against him dropped, arguing that some of them relied on a theory that the Supreme Court has said is invalid, and that some of the charges were improperly brought without consent from the Bahamas. The judge rejected this.
