The value of the Bitcoin cryptocurrency jumped, crossing the $28,000 level for the first time this month, prompted by BlackRock's submission of a request to establish an exchange-traded fund in the United States.
Bitcoin - the world's largest digital asset - rose by 5.3% at one point, reaching a two-week high of $28,142 during trading on the New York Stock Exchange. Minor cryptocurrencies, such as Ethereum and BNB, fluctuated slightly.
BlackRock filed an application for a Bitcoin exchange-traded fund with the Securities and Exchange Commission on June 15. The authority opposed allowing this type of spot fund, but the latest attempt was backed by the weight of the world's largest asset manager.
This demand is a big addition to the crypto sector, according to Caroline Moron, co-founder of OrBit Markets, which specializes in providing liquidity for digital asset derivatives.
Bitcoin climbs despite regulators attack
Bitcoin has jumped 9% since BlackRock's move, helping to lift the token from a resistance area near $27,000, based on underlying chart patterns.
The request came amid the legal battle between Grayscale Investments and the Securities and Exchange Commission to convert the Grayscale Bitcoin Trust Fund into a physically backed exchange-traded fund. The fund's discount to net asset value has fallen, amid speculation BlackRock's move may ultimately support Gray Cycle's case.
Bitcoin consolidates its edge amid caution of smaller cryptocurrencies
Markets are affected by the US tightening of the screws on the crypto sector and macroeconomic forces, in light of the prospects of further monetary tightening in the US after the Federal Reserve temporarily stopped raising interest rates this month.
Traders are also waiting for more clarity on the scale of expected economic stimulus in China, where the central bank recently cut borrowing costs.
Tony Sycamore, market analyst at IG Australia Pty, said the potential impact of Chinese economic stimulus on Bitcoin continues to interest investors.
