Bitcoin Hits a Six-Week High as Financial Titans Step Up Crypto Initiatives

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Bitcoin climbed to its highest level since early May, buoyed by crypto initiatives involving major players from the traditional financial sector. The largest digital asset rose as much as 3% and traded at $28,720 as of 11:10 a.m. in Singapore on Wednesday, lifting the token’s rebound this year to 74%. Smaller coins such as Ether, Cardano, and Solana also posted gains. Crypto investors have drawn succor from the start of a digital-asset exchange, EDX Markets, backed by firms including Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp. Separately, BlackRock Inc. and WisdomTree Inc. have applied in quick succession to launch spot US Bitcoin exchange-traded funds.

Those moves dissipated some of the gloom caused by a US Securities and Exchange Commission crypto crackdown that includes lawsuits against exchange operators Binance Holdings Ltd. and Coinbase Global Inc. In the process, the agency designated a raft of digital tokens as unregistered securities. “The rally is backed by institutional demand,” said Hayden Hughes, co-founder of social-trading platform Alpha Impact. “The BlackRock announcement on a Bitcoin ETF, plus EDX Markets, gave Bitcoin a boost on hopes that traditional institutions will add depth to the crypto market.”

Wisdom Tree is trying again for permission to start a spot US Bitcoin ETF after being rebuffed in the past. BlackRock made its filing on June 15. The SEC has resisted allowing such spot funds, but BlackRock’s attempt carries the heft of the world’s largest asset manager and its track record of winning approvals. “The BlackRock filing changed everything and reignited the race,” said Eric Balchunas, senior ETF analyst at Bloomberg Intelligence.


BlackRock’s application landed amid Grayscale Investments LLC’s legal battle with the SEC to convert the Grayscale Bitcoin Trust into a physically backed ETF. The trust’s discount to net asset value has narrowed sharply on speculation that BlackRock’s step could end up bolstering Grayscale’s case. Meanwhile, in Europe, Deutsche Bank AG has applied for regulatory permission to operate a custody service for digital assets.

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