[ad_1]
peshkov/iStock via Getty Images
Bitcoin (BTC-USD) surged to the highest level seen since the start of May in Tuesday mid-afternoon trading on news last week that asset management giant BlackRock (BLK) filed an application to create what would be the first-ever spot bitcoin exchange-traded fund in the U.S.
Despite risk-off action taking hold across traditional markets, the world’s largest digital token by market cap (BTC-USD) rose 5.5% to $28.13K at 3:03 p.m. ET. Ethereum (ETH-USD) was also trading in the green, drifting up 3.6% to $1.78K.
The bullish price action comes as BlackRock’s (BLK) bet on bitcoin (BTC-USD) “shows Bitcoin continues to be an asset of interest for some of the world’s largest financial institutions,” CF Benchmarks CEO Sui Chung said in a statement this past week.
“An estimated 20% of Americans have now owned bitcoin at some point,” he added. “BlackRock’s proposed ETF potentially offers the other 80% an option that is altogether more familiar and accessible.”
Note that this isn’t BlackRock’s (BLK) first foray into the crypto space. The company last August unveiled its first-ever private trust offering direct BTC exposure to its U.S.-based institutional clients. Shortly before that, it teamed up with crypto exchange Coinbase Global (COIN) to provide institutional clients access to direct BTC trading capabilities.
The BLK ETF filing also helped to repair the discount on Grayscale Bitcoin Trust’s (OTC:GBTC) share price relative to net asset value, narrowing to the lowest level since last September at around 33%. GBTC shares gapped up 8.8% at the time of writing.
Crypto-exposed stocks on the move include: Iris Energy (IREN), +19.3%, Hut 8 Mining (HUT), +15.7%, Bit Digital (BTBT), +17.4%, Marathon Digital (MARA), +15.4%, and HIVE Blockchain (HIVE), +11.8%.
More on the Crypto Market
[ad_2]