Bitcoin climbed beyond $28,000 for the first time this month, after some very interesting news. As it turns out, BlackRock, the world's largest asset manager, has filed for paperwork with the Securities and Exchange Commission (SEC) for a spot bitcoin exchange-traded fund (ETF)
So far, Bitcoin has added 5.3% over the last 24 hours, hitting the highest point it has been for over two weeks. Altcoinscoins such as Ether and BNB made comparatively small gains as well, and it appears that the crypto market is showing signs of recovery.
Let's dive into BlackRock's proposed ETF, and see what the buzz is all about.
If you didn't know what a Bitcoin ETF is, they are basically exchange-traded funds that monitor Bitcoin's price.
With ETFs, Rather than buying and keeping Bitcoin, investors can purchase shares of a Bitcoin ETF, which reflects ownership of a pool of Bitcoin owned by the fund.
As it turns out, the ETF in the works will allow investors to buy and sell bitcoin directly on the regulated platform BlackRocks intends to build.
This is a huge milestone for the crypto industry, as it could open the doors for more institutional adoption and mainstream acceptance of Bitcoin and crypto in general.
According to the filing, the proposed ETF will be used to track the performance of Bitcoin with regular price tracking across major spot exchanges.
The ETF would also use Coinbase Custody Trust Company as its custodian, which means that Coinbase would be responsible for storing and securing the Bitcoin holdings of the fund.
The news of BlackRock's filing has pushed the price of Bitcoin to new highs, as it signals growing confidence and interest in the crypto space.
At the time of writing, bitcoin is trading at around $29,921 and is trading at a whopping 10% gain over the last 24 hours (with 16% over the last seven days).
Other cryptocurrencies have also soared alongside Bitcoin, including Ethereum, Cardano, DOGE and Solana with 7%, 8.3%, 5.5% and 5.1% gains respectively, over the last 24 hours.
Following BlackRock's application last week, two other US-based asset managers have moved to register for Bitcoin ETFs.
Similar to BlackRock, WisdomTree has requested permission from the Securities and Exchange Commission (SEC) on June 21 to list its "WisdomTree Bitcoin Trust" on the Cboe BZX Exchange under the ticker "BTCW."
While the SEC has yet to approve any of the proposals, Bloomberg senior ETF analyst Eric Balchunas stated in a tweet, that "BlackRock breathed new life into the race".
Furthermore, Balchunas stated that crypto investors may actually have a reason to be glad at BlackRock's approach.
This is without mentioning that rumours have begun to circulate that Fidelity Investments, the multi-trillion-dollar fund manager, may also be trying to get in on the rush for Bitcoin ETFs.
According to AP_Abacus, Arch Public co's tweet on June 19, Fidelity Investments, which controls $4.9 trillion in assets, may consider launching its own spot Bitcoin ETF.
The market is largely positive at the time of writing, with the better part of the top cryptos performing excellently.
Some of the top gainers are Bitcoin and Ethereum (of course), Cardano, Dogecoin, Solana, Litecoin and a host of others.
Bitcoin is now trading at $29,949 and is eyeing a breakout at long last, from the $30,000 zone. Ethereum is on the verge of a breakout of its own, somewhere around the $1,864 zone. Others like Cardano, Dogecoin and Solana are trading at $0.28, $0.065 and $16.88 respectively.
Overall, the top gainer over the last 24 hours has to be Avalanche and Arbitrum with 10% gains, and Bitcoin Cash with a whopping 23% gain over the last 24 hours.
Others like XRP and BNB on the other hand, posted relatively low gains with less than 3% rises over the last 24 hours.
The last two candles on Bitcoin are highly bullish ones, as shown by the last two green candlesticks below
However, as shown above, Bitcoin now faces resistance at the 23.6% Fibonacci level, around $30,300 (red line).
If Bitcoin breaks through this zone, the next stop for the flagship cryptocurrency would be the $34,800 zone.
However, if Bitcoin again fails to break through $30,000, a decline to $27,455 almost seems likely.
With this in mind
Bullish target: $34,800
Bearish Target: $27,455
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.