Starting with Blackrock’s ETF application, a flurry of positive developments has transpired over the past few days within the crypto ecosystem. The accumulation trend has gotten back on track, with asset prices claiming higher targets.
Well, it doesn’t seem like the volatile times are going to end soon. The market could end up facing a $15 trillion ‘earthquake’. In effect, the valuation of assets including Bitcoin, Ethereum, Cardano, Dogecoin, Solana, and XRP could be impacted.
Also Read: Ethereum: Time to Brace for a 55% Rally?
The $15 trillion breakdown
The world’s biggest asset manager, Blackrock, filed a Bitcoin ETF application with the SEC last week. Well, the regulator has not approved any application for spot BTC ETFs so far. However, the latest move, when coupled with WisdomTree, Invesco, and Valkyrie‘s developments, highlights the resilience and keenness of the firm to serve investors with this new investment vehicle.
Blackrock roughly has $10 trillion worth of assets under management. Now, that could potentially be “opened up” to the crypto market. Furthermore, Japanese banking giant Nomura’s subsidiary, Laser Digital, recently revealed that 96% of professional investors, managing upto $5 trillion, are looking to invest in crypto. Highlighting what the study found out, Jez Mohideen, Laser Digital’s Chief Executive, said,
“Our comprehensive study reveals that the majority of institutional investors surveyed saw a clear role for digital assets in the investment management landscape, and the benefits they can bring, such as greater diversification of portfolios.”
Investors positive on Bitcoin, Ethereum
Nomura’s digital asset subsidiary surveyed 303 institutional investors, who collectively manage $4.95 trillion in assets. The survey pointed out that 82% of the investors had an optimistic outlook on both Bitcoin and Ethereum. Parallelly, 88% of them said that they or their clients were considering investing in crypto assets.
Alex Adelman, the Chief Executive of Bitcoin Rewards App Lolli, underlined the fact that Blackrock’s filing shows that there is “increasingly strong demand for exposure to Bitcoin among its clients, which include some of the biggest institutions in the world.” In effect, he feels, other Wall Street giants will soon follow in Blackrock’s footsteps. As a result, the market could see a “new wave” of crypto-related product launches for institutions going forward.
Simon Peters, a Market Analyst at eToro noted that the potential for a BTC spot ETF to “move the market is not hugely clear.” This is essential because the shots will be called by demand. However, he asserted that Blackrock manages an “eye-watering amount of the world’s capital.” So, the success of a spot ETF could unlock “enormous amounts of liquidity” in the market. This, in turn, could help in boosting asset prices.