Bitcoin Hits $30,000—TradFi Players’ ETF Frenzy Pushes BTC Price

 

Bitcoin Hits $30,000—TradFi Players’ ETF Frenzy Pushes BTC Price
Bitcoin has surpassed the $30,000 mark for the second time this year. Fueled by the increasing involvement of several traditional finance  participants venturing deeper into the cryptocurrency space, the leading crypto asset hit the milestone.

According to CoinMarketCap data, currently Bitcoin (BTC) is trading at $30,174 after a rise of over 8% and 16% in the 24 hours and last seven days, respectively. 

Coinciding with the cryptocurrency's rally, prominent traditional finance (TradFi) behemoths such as BlackRock, Invesco, and WisdomTree have submitted applications for spot bitcoin exchange-traded funds (ETFs). 

Additionally, EDX, a crypto exchange supported by notable TradFi participants, made its debut on Tuesday. The exchange, with backing from Fidelity Digital Assets, Charles Schwab, and Citadel Securities, will facilitate the trading of four tokens within the United States, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Notably, the news of these developments has also spurred a surge in Bitcoin Cash (BHC) prices, with a notable 25% gain observed during the day.

On another front, banking titan Deutsche Bank made an announcement on Tuesday, disclosing its application for a digital asset custody license in Germany. This move indicates the continued interest of traditional finance (TradFi) participants in the crypto space, seemingly undeterred by the regulatory crackdown initiated by the U.S. Securities and Exchange Commission (SEC) against cryptocurrency exchanges.

According to recent data provided by Coinglass, a crypto tracking platform, approximately $207 million worth of positions were liquidated within the past 24 hours. Notably, the majority of these liquidations were associated with short positions.

Coinglass reports that a significant sum of $173 million in short positions has been liquidated, resulting in losses for those involved. Conversely, long investors have experienced losses amounting to over $34 million, according to the data provided.

In a recent statement, esteemed economist Alex Krüger expressed his belief that BlackRock's recent attempt to establish a Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) could present one of the most straightforward opportunities to invest in Bitcoin this year. 

Krüger further added that he has a "gut feeling" that the regulatory agency, which has previously denied all spot-based ETF proposals, might approve this particular bid as early as next year.

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.