Bitcoin is heading for its best week since March on speculation about ETFs

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Smaller cryptocurrencies are retreating this morning, but bitcoin is holding onto gains and holding at $30k; Up for the week up to 17%.

Paulo Alves

Jun 23, 2023 08:09 am – Updated 14 minutes ago

After a strong rally in recent days, Bitcoin (BTC) is heading to close its best week since March, spurred by speculation that an ETF (index funds) with direct exposure to proposed cryptocurrencies in the United States may create fresh demand for the digital asset.

At 8:00 am, the digital currency has been trading flat over the past 24 hours, at $30,094, but has accumulated an estimate of 17% in the past seven days. In 2023, the price of bitcoin has already increased by 80%, according to data from Coinmarketcap. Altcoins such as Ethereum (ETH), BNB, XRP, and Cardano (ADA) are performing lower, dropping between 1% and 3% since yesterday.

Bitcoin’s upward movement began when BlackRock made a surprise request on June 15th for approval with Securities and Exchange Commission (Securities and Exchange Commission) of a Bitcoin ETF that invests directly in digital assets. Other directors soon followed, making similar requests.

Unlike Brazil, the US still does not have an “outright” Bitcoin ETF, only with exposure to cryptocurrency futures contracts. Regulatory reason: The SEC has not approved such initiatives.

Now, however, some analysts are betting that the weight of managers, especially BlackRock, could mean the Commission may change its position.

“The approval will have a significant impact on the Bitcoin market structure as it will lower the barriers for investment advisors to recommend exposure. [ao ativo]Vitel Lundy, senior analyst at K33 Research, wrote in a report.

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In addition to ETF filings, the cryptocurrency market has been excited about the launch of a new exchange called EDX Markets, which is backed by famous Wall Street institutions such as Citadel, Fidelity, and Charles Schwab.

The crackdown on the sector by US regulators has been overshadowed by an explosion of optimism, at least for the time being, amid lawsuits filed against the country’s Binance and Coinbase exchanges.

Matt Hogan, chief investment officer at Bitwise Asset Management, said in an interview with bloomberg. “But the long-term prospects look exceptionally strong.”

Cryptocurrency investors also ignored the statements of central bankers, who did not rule out continuing monetary tightening in an effort to contain inflation, something that has not yet returned liquidity to the financial market.

“We are looking forward to a major narrative shift,” writes Noelle Acheson, author of the newsletter. Encryption is a macro now. “[A narrativa] It has a particular focus on cryptocurrency, which is positive on several fronts.”

Check out how the major cryptocurrencies did at 8:09 am:

Cryptocurrencies with the biggest increase in the last 24 hours:

Cryptocurrencies with the biggest losses over the past 24 hours:

Check out how the cryptocurrency ETFs closed in the last trading session:

(with information from Bloomberg)