Crypto markets have been going through a crisis of confidence, but recent filings for spot bitcoin ETFs have helped energize crypto markets, according to eToro U.S. investment analyst Callie Cox. Bitcoin surged over $30.7K before settling nearer to $30K, while Ether enjoyed a similarly upbeat Wednesday to continue its momentum. Other large cryptos spent the day in deep green territory with ADA and MATIC, the native cryptos of smart contract platforms Cardano and Polygon, each up more than 7%, along with popular memecoin DOGE.
The surge in institutional interest followed closely after ongoing U.S. regulatory scrutiny seemed to reach new heights earlier this month with SEC lawsuits against exchanges Binance and Coinbase, leaving markets in a funk. The filings by BlackRock and other large asset management firms, as well as Invesco and WisdomTree, have offered the latest evidence of institutional investors’ growing interest in the crypto space.
These players, among other big names, are obviously going to add a lot of liquidity to the market and make investors more confident to buy bitcoin again, said Nihar Neelakanti, the CEO and co-founder of carbon-backed digital collectibles Ecosapiens.
Cox views the ETFs as a positive sign, and believes the market is as well. It shows that Wall Street still believes in certain parts of crypto and that it’s not like the price of Bitcoin is going to zero. We need to understand what the value is. There is value.