Bitcoin surges to impressive heights on Monday, experiencing a 5% surge to $28,002.18, marking its highest level since early May, according to Coin Metrics. In addition, Ether saw a rise of 3.5%, trading at $1,782.99.
Since late last week, the optimism surrounding cryptocurrencies has been on the rise after BlackRock, the largest asset manager globally, submitted an application for the United States’ inaugural spot bitcoin exchange-traded fund (ETF). Shortly after the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Coinbase, BlackRock made a similar move. The timing of BlackRock’s application, particularly with Coinbase as its crypto custody partner, has sparked speculation.
Fidelity, an active follower of crypto developments since 2014, has also made significant strides in the crypto space. The establishment of the Fidelity Digital Assets division, the introduction of the Fidelity Crypto commission-free retail investing app, and the provision of access to cryptocurrencies for 401(k) investors through employers are recent initiatives by the firm.
While many financial incumbents show enthusiasm for blockchain technology’s potential in advancing traditional financial infrastructure, their views on crypto investing remain less vocal.
Financial Titans Forge Ahead with Crypto Initiatives, Bitcoin Surges to a Six-Week High
Citadel, Fidelity-backed exchange, and BlackRock’s ETF application spark hope in the crypto market.
In a significant development, a new cryptocurrency exchange backed by Citadel, Fidelity, and Charles Schwab, known as EDX, was launched. The exchange, which operates on a non-custodial basis, offers to trade for major digital assets such as Bitcoin and Ether. This move by major Wall Street players has not gone unnoticed, raising questions about the timing and coordination of their entry into the crypto space.
While U.S. agencies like the SEC have charged crypto companies with violating securities laws and proposed rules that are seen as inadequate for the technology, sentiments similar to Long’s views have reverberated across crypto-focused social media accounts. Critics argue that large financial firms have marginalized smaller participants to capitalize on discounted digital assets.
The recent application by BlackRock, the world’s largest asset manager, to launch a Bitcoin ETF has stirred controversy. If approved, it could intensify the debate surrounding incumbent financial institutions entering the crypto space. Long suggests that an incumbency bias exists, favoring established companies over crypto-native entities.
Despite the scrutiny and regulatory challenges, Long remains confident in the future of blockchain technology, emphasizing that nothing can impede the progress of base-layer blockchains.
