Crypto Market Prepares for Major Impact from BlackRock and Wall Street ETFs Following Bitcoin Price Drop to $60,000
Bitcoin has made a remarkable comeback this year, reclaiming the spotlight due to the anticipated adoption by Wall Street and an upcoming revelation from Donald Trump. The price of Bitcoin soared past its previous all-time high in March, but recently dipped below $60,000 amid concerns about a potential stock market crash and a looming U.S. economic downturn, coupled with a serious crypto warning issued by the FBI.
Following a bold prediction by billionaire Mark Cuban regarding Bitcoin’s future, a leak has surfaced, indicating that financial giant Morgan Stanley is poised to launch a spot Bitcoin exchange-traded fund (ETF), setting the stage for a significant market shift. CNBC reported that Morgan Stanley plans to allow its 15,000 financial advisors to offer spot Bitcoin ETFs to select clients, subject to specific wealth and risk criteria.
Despite the success of several spot Bitcoin ETFs launched earlier this year, major banks like Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo have refrained from providing them to clients. Reports earlier this year hinted at Morgan Stanley’s eagerness to lead the way in approving Bitcoin ETFs, with expectations that this move could trigger a substantial surge in Bitcoin’s value.
Since their introduction in January, the dozen spot Bitcoin ETFs have amassed a total of $57.2 billion in net assets, with significant inflows. Notably, BlackRock’s IBIT fund has quickly grown to over $21.5 billion in net assets, establishing itself as one of the fastest-growing ETFs on Wall Street.
Larry Fink, the CEO of BlackRock, recently acknowledged his previous misjudgment of Bitcoin, now recognizing it as a legitimate financial instrument after previously dismissing it as a tool for money laundering.
Market observers are currently observing low liquidity in various assets, impacting the Bitcoin price’s ability to sustain its earlier momentum. Jag Kooner, the head of derivatives at Bitfinex, highlighted the emergence of buy walls for Altcoins and predicted a Bitcoin price range of $61,000 to $70,000, creating an accumulation zone for traders.
In conclusion, the cryptocurrency market is experiencing significant developments driven by institutional adoption and regulatory advancements, setting the stage for potential market shifts and increased investor interest in digital assets.
