Bitcoin eyes third straight day of gains after touching two-month high

BITCOIN rallied for a third straight day after hitting its highest level since mid-April, boosted by BlackRock’s plan to create a bitcoin exchange-traded fund (ETF) even as the sector faces US regulatory scrutiny.

BlackRock, the world’s biggest asset manager, filed last week for the exchange which would allow investors to get stakes in the asset class. The Wall Street Journal reported on Tuesday (Jun 20) that EDX Markets, a crypto exchange backed by Citadel Securities, Fidelity and Schwab had started operations.

The global cryptocurrency industry has been caught in the crosshairs of the US securities regulator on alleged violations of securities laws. Earlier this month, the US Securities and Exchange Commission (SEC) sued major crypto exchanges including Coinbase and Binance.

Bitcoin, the world’s biggest and best-known cryptocurrency, was last up 5.5 per cent on Wednesday at 29,881.00 after hitting a high of US$30,755.00. It is up roughly 81 per cent for the year-to-date.

“It started with BlackRock’s Bitcoin ETF filing and now others are following,” said Edward Moya, a senior market analyst at Oanda. “Who needs regulatory clarity if you see BlackRock making a move?”

But he cautioned that while “Bitcoin momentum may last a little longer” the sector needs to “hear good news from the SEC to see a sustained rally target in the mid-US$30,000 region”.

SEE ALSO

Bitcoin jumps to US$28,000 on boost from BlackRock ETF filing

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Ether, the coin linked to the Ethereum blockchain network, rose 4.8 per cent to US$1,877.70. REUTERS