Cryptocurrency Prices Fluctuate Amid False Rumors of SEC Approval
This week, there were rumors circulating that falsely claimed the U.S. Securities and Exchange Commission (SEC) had approved iShares’ spot Bitcoin exchange-traded fund (ETF). These rumors caused significant price fluctuations in major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).
Within just one hour, over $100 million worth of liquidations occurred as a result of these rumors. While the price of BTC was pumped and dumped, CEO of BlackRock, Larry Fink, acknowledged that the rally revealed a strong interest in crypto. He attributed the rally to a “flight to quality” amid global issues such as the Israeli war and terrorism.
BlackRock’s Move into Crypto
BlackRock, the largest asset manager globally, has been gradually entering the cryptocurrency space. Fink stated that they have been hearing from clients worldwide about the need for crypto. The firm recently utilized JPMorgan’s blockchain-based collateral settlement system for tokenizing shares of a money market fund.
This move by BlackRock demonstrates their belief in the potential of blockchain technology and its ability to facilitate easier and cheaper transfers of traditional assets such as stocks, bonds, real estate, and alternative investments like art.
BlackRock and JPMorgan Preparing for Next Crypto Boom
In preparation for the next cryptocurrency boom, BlackRock and JPMorgan are quietly laying the groundwork. Forbes reports that these financial powerhouses are expecting a surge in digital asset values, including Bitcoin, Ethereum, and XRP.
BlackRock CEO Larry Fink has already recognized the significance of digital assets in his annual shareholder letter. In June, BlackRock filed to launch a spot Bitcoin ETF, triggering similar applications from other major financial institutions. These institutions collectively manage a staggering $27 trillion in assets.
Anthony Scaramucci, the founder and managing partner of SkyBridge Capital, believes that Bitcoin’s market capitalization could reach $15 trillion, which is approximately 2,660% higher than its current market capitalization of $540 billion.
Hot Take: BlackRock and JPMorgan Leading the Way in Crypto
The involvement of BlackRock and JPMorgan in the cryptocurrency space signals a significant shift in the financial industry. As these giants embrace blockchain technology and digital assets, it paves the way for wider adoption and recognition of cryptocurrencies as legitimate investment vehicles.
Their moves also indicate a growing demand for crypto from clients around the world. With their combined expertise and resources, BlackRock and JPMorgan are poised to play a pivotal role in shaping the future of crypto markets.
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