Bitcoin, the world’s largest cryptocurrency by market value, surged 8% in the past 24 hours after various traditional finance firms announced moves into the crypto market. Banking giant Deutsche Bank applied for a digital asset custody license in Germany and crypto exchange EDX Markets, backed by Citadel Securities and Fidelity, started offering trading for BTC, ETH, LTC, and BCH. Investment management company Invesco also re-applied for a spot bitcoin ETF, while BlackRock filed for a spot BTC ETF last week. This move towards crypto by major financial institutions reflects a significant shift in their stance on the industry’s potential, said Mark L. Newton, head of technical strategy at FundStrat.
Grayscale Bitcoin Trust’s (GBTC) share price soared on Tuesday on optimism about converting the fund into an ETF after BlackRock’s filing. The shares rose past $16 on secondary markets, and have gained 24% since Thursday. The discount on GBTC’s share price relative to net asset value narrowed to as low as 33%, the lowest level since last September.
Invesco, which has $1.4 trillion assets under management, argued that the lack of a spot bitcoin ETF pushes investors toward riskier alternatives. In its filing, Invesco emphasized the need for investor protection, saying that approval for such a spot bitcoin ETF hinges on a surveillance-sharing agreement with a significant, regulated market.