2023-06-24 01:45:41
© Reuters. Bitcoin cryptocurrency illustration 6/16/2023 REUTERS/Ruvic data/Illustration/Archive
By Hannah Lang in Chibuike Oguh
(Reuters) – The world’s biggest cryptocurrency hit a more than one-year high on Friday, ending a week of gains sustained in part by BlackRock (NYSE:) plans to create an exchange-traded investment fund. (ETF) for bitcoin despite intense US regulatory scrutiny of the digital asset industry.
BlackRock, the world’s largest asset manager, last week recorded the launch of the iShares Bitcoin Trust, an ETF that would have Coinbase (NASDAQ:) Custody as its custodian and offer institutional investors exposure to the cryptocurrency.
The measures have revived investor interest in cryptocurrencies, which have been at a low ebb after a series of cryptocurrency company collapses, including the sudden collapse of the FTX exchange last year.
Bitcoin has gained nearly 25% since BlackRock’s filing. The currency reached $31,458 this Friday, the highest level since June 7, 2022, and rose 3.29% to $30,872.
“The dark clouds that have been hanging over cryptocurrencies have been dissipating in recent days amid an explosion of institutional interest,” said Kate Laurence, managing partner at Bloccelerate VC, which invests in crypto projects.
“The fact that companies like BlackRock, Charles Schwab, Fidelity and Citadel have entered the cryptocurrency market is hugely significant, as it demonstrates that institutions are very serious about this sector — despite the recent regulatory crackdown.”
(Reporting by Hannah Lang in Washington and Chibuike Oguh in New York; Additional reporting by Niket Nishant and Lisa Pauline Mattackal)
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