Bitcoin Dominance Surges To 50% as BlackRock Filing Fuels Confidence
June 21, 2023Bitcoin is again at 50% market dominance, indicating that the cryptocurrency now accounts for half of the total crypto market cap, valued at $1.052 Trillion.
According to data from Tradingview, Bitcoin’s total market dominance crossed above 50% yesterday, June 19, for the first time in months.
The news of Bitcoin’s renewed dominance has driven much excitement across the crypto community, with many speculating on the reason for such market growth.
However, one possible reason is the news of prominent global asset manager BlackRock filing for a Bitcoin Exchange Traded Fund (ETF) with the United States Securities and Exchange Commission (SEC). This move appeared to have boosted investors’ confidence upon announcement, causing BTC’s price to surge above $28,000 since last month.
According to data from CoinMarketCap, BTC is currently trading around $27,432.93, with a 3.13% gain in the last day. The token’s daily trading volume is also up by 83.39%, valued at $17 billion. Meanwhile, Bitcoin currently boasts a staggering market cap of $531.54 billion, covering over 50% of the entire crypto market.
Bitcoin Market Dominance At 50.63% | Source: Tradingview.com
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BlackRock’s ETF Filling: An Influential Mainstream Move
The news of BlackRock’s Bitcoin ETF filing was seen as a major development in the crypto space drawing several reactions from crypto enthusiasts across the globe.
Essentially, a Bitcoin exchange-traded fund (ETF) mirrors the fluctuations in Bitcoin’s price, granting investors exposure to the cryptocurrency without requiring direct acquisition.
The foray of a traditional finance company such as BlackRock, with a valuation of $105.25 billion, into the realm of cryptocurrency carries immense significance.
There is even a belief among some industry figures that this ETF application will be accepted in a “short time” despite the high number of ETF rejections usually dished out by the SEC. This will be the first-ever spot market Bitcoin ETF certified by the SEC if approved.
The Promising Prospects of A Bitcoin ETF
Bitcoin has experienced a significant amount of volatility since May 2021. The price of the number one cryptocurrency has fluctuated wildly, reaching an all-time high of over $68,000 before crashing to a low of $26,500.
A Bitcoin ETF would be good news for investors as it provides an easy, secure, and regulated way to invest in Bitcoin and diversify their portfolios. Furthermore, a Bitcoin ETF will likely attract more institutional investors who were previously hesitant about getting into crypto because of custody and regulatory concerns.
The buzz surrounding the Bitcoin ETF continues to intensify, with additional news emerging that Fidelity Investments, an asset management powerhouse with assets totaling $4.5 trillion, is seeking a regulatory license to provide crypto custody services.
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