The prices of major cryptocurrencies saw sharp fluctuations this week after rumors falsely suggested that the U.S. Securities and Exchange Commission (SEC) approved iShares’ spot Bitcoin exchange-traded fund (ETF). The move boosted various altcoins, including $ETH and $XRP, along with $BTC itself.
The rumors triggered over $100 million in liquidations in the space of just one hour. While the rumors pumped and dumped BTC’s price, BlackRock CEO Larry Fink has said that the rally revealed there’s “pent up interest in crypto,” and noted that he believes the rally came as a “flight to quality, with all the issues around the Israeli war now, global terrorism.”
BlackRock’s CEO added that the firm has been “hearing from clients around the world about the need for crypto.” BlackRock, the world’s largest asset manager, has been slowly moving into the cryptocurrency space, and recently utilized JPMorgan’s blockchain-based collateral settlement system as part of a plan Fink could usher in “the next generation for markets.”
As CoinDesk reported, last week BlackRock leveraged JPMorgan’s Ethereum-based Onyx blockchain and its tokenized collateral network to tokenize shares of a money market fund. The tokenized money market fund shares were then transacted with Barclays in London through an over-the-counter derivatives trade.
Blockchain technology, which powers Bitcoin and other cryptocurrencies, enables the creation of digital tokens that represent traditional assets on a public ledger. This could make it easier and cheaper to transfer anything from stocks, bonds, real estate and alternative investments like art.
Forbes reports that BlackRock and JPMorgan are preparing for the next cryptocurrency boom that will boost the values of digital assets such as Bitcoin, Ether, and XRP, among others.
Previously, BlackRock CEO Larry Fink acknowledged the significance of this technology, noting intriguing advancements within the digital asset realm in his annual shareholder letter.
In June, BlackRock filed to launch a spot Bitcoin exchange-traded fund, seemingly igniting a domino effect as peers rushed to file similar applications. As a result, major financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin ETF in the US.
As CryptoGlobe reported, the founder and managing partner of SkyBridge Capital Anthony Scaramucci, recently revealed he believes Bitcoin’s market capitalization could reach $15 trillion, around 2,660% above its current $540 billion market capitalization.
Featured image via Unsplash.
