BlackRock’s Crypto Move Ignites Market Surge as Professional Investors Flock to Bitcoin and Ethereum

News about BlackRock Inc’s intention to delve deeper into crypto by applying to the United States Securities and Exchange Commission (SEC) for approval to list spot Bitcoin Exchange Traded Funds (ETF) has switched the gloomy atmosphere of the broad digital asset eco. Bitcoin (BTC), Ethereum (ETH) and some other digital assets have recovered slightly within the last few days following the announcement

The leading cryptocurrency by market capitalization jumped by a significant percentage on Tuesday and is currently trading at $28,820.57, implying a 7.75% increase in the last 24 hours. Generally, this price rally has had its positive effect on the broad crypto market, affecting ETH and some of the tokens listed in the Binance-Coinbase lawsuits with the SEC like Binance Coin (BNB), Solana (SOL), Cosmos (ATOM), and Polygon (MATIC) amongst others.

The U.S SEC filed two separate lawsuits against leading digital asset service provider Binance and Coinbase for operating unregistered businesses. Binance and its Chief utive Officer (CEO) Changpeng ‘CZ’ Zhao were also indicted for misleading investors, mishandling funds and flouting Know-Your-Customer (KYC) rules. The enforcement actions took its toll on the broad crypto eco causing the price of tokens to dip.

BTC price fell below $26,000, and ETH slipped below $1,800. BNB, and Solana native token SOL plummeted by up to 10%. ADA, MATIC and DOGE went down by approximately 8%. Litecoin (LTC) which was equally making rounds around that time dipped by more than 9%.

BlackRock’s Reputation Stirs Institutional Investors Towards Crypto

The possibility of BlackRock’s almost $10 trillion in assets under management (AUM) being opened to the BTC and general crypto market has inarguably caused a mindshift amongst professional investors. Alex Adelman, the CEO of Bitcoin rewards app Lolli, believes that the initiative for BlackRock to file a BTC ETF is an indication of an increased demand for exposure to BTC amongst its clients who are some of the world’s biggest institutions. He added:

Also, BlackRock’s size, stature and its reputation seem to have influenced institutional investors positively. According to a survey conducted by Laser Digital, the digital assets subsidiary of major banking giant Nomura, 96% of professional investors controlling around $5 trillion are now interested in crypto investments

The survey involved 303 participants out of which 82% appeared to have a positive attitude towards the two leading cryptocurrencies BTC and ETH Again, 88% mentioned that either they or their clients are considering expanding their portfolios through crypto investments. Beyond the confidence ignited by BlackRock, these institutional investors discovered the distinct role of crypto assets in the investment management landscape as well as its benefits, per a statement by Laser Digital CEO Jez Mohideen highlighted