On Monday, the value of Bitcoin increased as financial institutions continued to express their support for the cryptocurrency.
Coin Metrics reported that Bitcoin experienced a rise of over 5% to reach $28,002.18, which is its highest value since May, while Ether increased by 3.5% and was trading at $1,782.99.
The crypto market has been optimistic since last week after BlackRock, the world’s largest asset manager, submitted an application for the first-ever spot bitcoin ETF in the United States, following the Securities and Exchange Commission’s lawsuit against two of the largest crypto exchanges, Binance and oinbase">Coinbase, with BlackRock’s partnership with oinbase">Coinbase as its crypto custody partner raising questions about the timing of the move.
On Tuesday morning, a recently launched cryptocurrency exchange revealed that it has been actively trading Bitcoin and Ether for several weeks, with support from major financial institutions such as Charles Schwab, Fidelity Digital Assets, and Citadel Securities.
Fidelity has been closely monitoring the progress of the cryptocurrency industry since 2014, and has since established the Fidelity Digital Assets division, launched a commission-free retail investing app named Fidelity Crypto and enabled 401(k) investors to invest in cryptocurrencies (subject to employer availability).
Numerous financial institutions are eager to demonstrate their interest in blockchain technology and how it can enhance traditional financial infrastructure, but many are less vocal about their stance on investing in cryptocurrencies.
As major players such as BlackRock and Fidelity publicly showcase their dedication to the cryptocurrency industry, investors are optimistic that the perceived reputational risk associated with conducting any form of crypto business, which has been a psychological obstacle for some investors to invest in Bitcoin, may begin to diminish.
Despite facing challenges in surpassing a limited trading range this quarter, Bitcoin has managed to maintain a value above $25,000. The significant increase on Tuesday has resulted in a positive monthly gain, with the cryptocurrency’s value having increased by 69% since the beginning of the year.
