Several exciting events have lifted the price of Bitcoin (BTC) beyond levels US$31,000, but there are still threats lurking.
A neat milestone for the crypto market is Blackrock’s submission for Bitcoin ETFs with the SEC.
Although the Commission has yet to approve the application, Blackrock’s move, along with that of other industry players, reflects a strong desire to offer their investors a new investment path.
Impact on BTC Prices and Crypto Markets
Watchers News reported that institutional interest in digital assets continues to grow, as revealed in a survey conducted by Nomura’s subsidiary, Laser Digital.
The study revealed that 96 percent of professional investors who manage funds of up to US$5 trillion, are interested in investing in cryptocurrencies.
These investors also expressed an optimistic view of Bitcoin and Ethereum, with 82 percent of them expressing positive sentiment.
Additionally, 88 percent of the respondents indicated that they or their clients are considering investing in crypto assets.
“Our comprehensive study reveals that the majority of institutional investors surveyed see a clear role for digital assets in the investment management landscape and the benefits they can bring, such as greater portfolio diversification,” said Chief Executive at Laser Digital, Jez Mohideen.
Bitcoin ETF application submission by Blackrock not only demonstrated a growing demand for exposure to Bitcoin among his clients, including major institutions, but also paved the way for other Wall Street giants to follow in his footsteps.
Bitcoin Rewards App Lolli CEO, Alex Adelman, believes that the move could start a new wave of crypto-related product launches aimed at institutional investors.
Threats Still Await
Coindesk reported that, Leaders in Data and Analytics platforms crypto FRNT Financial Strahinja Savic argues that the move continues above levels US$31,000 will be a sign the market is entering a new phase, changing some of the anxiety from the previous rule.
According to him, that fueled speculation that institutions will increase their interest in digital assets such as Bitcoin.
On the other hand, although several central banks such as the Fed and the Bank of England have acted dovish in recent weeks, they could still turn around to continue raising interest rates. This can certainly put a strain on digital assets. [st]