A Bitcoin ATM, the largest cryptocurrency by market cap that operates free of any central control and that relies on a peer-to-peer software and cryptography, on the BitBase stand during the Mobile World Congress 2023 on March 10, 2023, in Barcelona, Spain.
Joan Cros | Nurphoto | Getty Images
The price of bitcoin surged on Monday as major financial institutions showed their support for the cryptocurrency.
Bitcoin rose by over 5% to reach $28,064.10, its highest level since early May, according to Coin Metrics. This increase brought its monthly gains into positive territory. Ether also saw a rise of 3.7%, trading at $1,786.25. However, it remains down more than 4% for the month.
Sentiment in the crypto market has been positive since last week when BlackRock, the world’s largest asset manager, filed an application for the first-ever spot bitcoin exchange-traded fund (ETF) in the United States. This news came just a week after the Securities and Exchange Commission sued two major crypto exchanges, Binance and Coinbase. Many have speculated about the timing of BlackRock’s move, especially considering Coinbase as its crypto custody partner.
Bitcoin – 1 month
On Tuesday morning, a new cryptocurrency exchange supported by major financial institutions such as Charles Schwab, Fidelity Digital Assets, and Citadel Securities announced that it has been actively trading bitcoin and ether for several weeks.
Fidelity has been closely following developments in the crypto space since 2014. In recent years, the company has established the Fidelity Digital Assets division, launched a commission-free retail investing app called Fidelity Crypto, and provided access to cryptocurrencies for 401(k) investors (subject to availability by employers).
While many traditional financial institutions are interested in blockchain technology and its potential to enhance existing financial infrastructure, they have been relatively quiet about their stance on crypto investments.
With prominent names like BlackRock and Fidelity openly supporting cryptocurrencies, investors are optimistic that the perceived reputational risks associated with crypto businesses, which have been a psychological barrier for some investors, may begin to diminish.
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