Bitcoin rose by 3% on Wednesday to $28,720; its highest level since May. The largest digital asset has rebounded by 74% so far this year. Ether, Cardano, and Solana also posted gains.
The recent crypto rise follows a wave of interest in digital currencies from traditional banking and investment institutions. This includes the recent unveiling of the digital-asset exchange, EDX Markets, which has received backing from the likes of Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.
“The rally is backed by institutional demand,” Hayden Hughes, co-founder of social-trading platform Alpha Impact observed. “The BlackRock announcement on a Bitcoin ETF, plus EDX Markets, gave Bitcoin a boost on hopes that traditional institutions will add depth to the crypto market.” BlackRock Inc. and WisdomTree Inc. both applied to launch their own US Bitcoin exchange-traded funds.
Recent interest in cryptocurrencies from traditional banking firms is unexpected given a recent crackdown from the US Securities and Exchange Commission. This included lawsuits against exchange operators Binance Holdings Ltd. and Coinbase Global Inc.
WisdomTree’s most recent effort to launch a Bitcoin ETF comes after the company had its previous bid rejected. The company’s second filing comes after BlackRock submitted its own filing on June 15.