In the early hours of Friday (June 16), Bitcoin ushered in a wave of rebound and the price of the currency rose all the way and stabilized at $25,584. From a technical point of view, the bulls are in a strong mood to enter the market after hitting the bottom. After many rejections, iShares, a subsidiary of asset management giant BlackRock, officially submitted documents for Bitcoin spot ETF to the US Securities and Exchange Commission, which will lay a greater market foundation for the Bitcoin market and promote the recovery of bullish sentiment.
The fund will be called the iShares Bitcoin Trust, and its assets will consist primarily of bitcoin held on behalf of the trust’s custodian, which the filing said is crypto exchange Coinbase, according to filings from BlackRock’s iShares.
Although the SEC has previously approved some Bitcoin futures ETFs, it has rejected all Bitcoin spot ETF applications from asset management companies, including Grayscale, VanEck and WisdomTree. BlackRock is the world's largest asset management company, with more than $10 trillion in assets under management.
“The proposed ETF is benchmarked to the CME CF Bitcoin Reference Rate,” Sui Chung, CEO of CF Benchmarks, a subsidiary of cryptocurrency exchange Kraken, said in commenting on the filing.
“CF Benchmarks sources its price data only from cryptocurrency exchanges that adhere to the highest standards of market integrity and transparency. This protects investors, as products benchmarked against it consistently and reliably track the spot price of the underlying asset,” he added.
“BlackRock’s growing involvement shows that Bitcoin remains an asset of interest to some of the world’s largest financial institutions,” she stressed.
Then, good news followed, and Bloomberg reported that TMX Group, the parent company of the Toronto Stock Exchange, is planning to launch a new trading platform for start-ups and alternative asset classes. The company said in a white paper released this week that the new exchange will target growth companies.
The company has not yet determined which asset classes will be traded on the new exchange, but is considering cryptocurrencies, non-fungible tokens (NFTs), securitized real estate and shares in private companies.
In addition, the TSX Venture Exchange is also considering providing a "pass" to companies with a valuation of at least 50 million Canadian dollars and seeking 10 million Canadian dollars in independent financing to speed up the listing process.
The rebound comes after bitcoin plunged late Wednesday amid ongoing concerns about overexpansion in U.S. central bank monetary policy and growing regulatory scrutiny of cryptocurrencies in the U.S. Bitcoin recently rebounded to $25,584, up nearly 2% in the past 24 hours.
Ethereum also surged above $1,660, up 0.8% from the same time on Wednesday. Other major cryptocurrencies turned green from the negative territory they occupied for most of Thursday, with Solana smart contract platform Solana token SOL recently rising 1.8%, SAND and AXS also rising more than 1%, while Polygon blockchain's native cryptocurrency MATIC fell more than 4%.
Interestingly, these assets are among the 19 mentioned in the SEC’s lawsuit alleging that exchanges Binance and Coinbase violated securities laws.
Brian D. Evans, CEO of Web3 Ventures and advisory firm BDE Ventures, noted investor concerns about an increasingly hostile crypto environment in the U.S. “I feel like we are at the beginning of a major shift where project founders are looking for bases outside of the U.S.,” he wrote.
He added: “In that sense, the market feels very confused. In the US, they are scratching their heads over the complexity of a regulatory system that has not been updated since the Great Depression. This failure has prompted projects to look for jurisdictions with better regulation, such as Hong Kong, Dubai and the UK.”
He went on to note that “a global reshuffle is taking place, and the next wave of innovation and market boom is taking shape, centered around Asia and the Middle East. In that sense, I think the digital asset ecosystem is actually getting stronger, making the fireworks that may follow the next Bitcoin halving all the more surprising to a large number of observers. In short, yes, the bullish sentiment is there, but it is increasingly driven by events happening abroad.”
The following is a technical analysis of Bitcoin:
Bitcoin is still fluctuating around $25,584. Colombia's central bank, Banco de la República, will work with the Ministry of Information and Communications Technology (MinTIC) to pilot Ripple's CBDC platform to improve its high-value payment system.
Looking at the 4-hour chart, the low bullish momentum reversed and rose, and the bullish sentiment was strong. There is a trend of continued upward movement in the short term. The MACD indicator is in the bearish zone, and the RSI indicator is in the bearish zone.
Resistance: 25785 25985
Support levels: 25253 25046
Trading strategy: Bullish above 25454, target 25785 25985
