The price of Bitcoin ($BTC) has been on a remarkable surge, with an impressive 11.2% increase in the past 24 hours.
As of the time of writing, the leading digital asset is trading at $29,782 potentially signalling an upward trend that could see it break the $30k mark.
This is the first time that it has crossed $29k for the first time since May.
Bitcoin’s recent positive momentum can be attributed to renewed attention from institutional investors like BlackRock which has instilled a sense of confidence in the market. The latest to join the league of such institutions is Invesco Limited and WisdomTree Investments.
Invesco Limited joins race for Bitcoin ETF
Independent investment company, Invesco Limited in collaboration with Galaxy Digital have applied for a Bitcoin ETF with the SEC. Per the document, a third-party US-based company will act as the trust’s Bitcoin custodian. The filing marks Invesco’s second attempt at a Bitcoin ETF. Its first in 2021 was unsuccessful.
In its filing, Invesco highlighted the need for a spot Bitcoin ETF to enable people gain exposure to Bitcoin with the trust of a regulated entity. It further argued that the absence of an approved spot Bitcoin ETF exposes retail investors to risk, citing examples of collapsed platforms FTX, Celsius Network, BlockFi and Voyager.
WisdomTree re-applies for Bitcoin ETF
WisdomTree Investments, a fund management company based in New York, has entered the competition for the first spot Bitcoin ETF, following in the footsteps of Invesco. The company had previously submitted two applications to the SEC, one in December 2021 and another in October 2022, which were both rejected.
However, WisdomTree has filed once again for a spot Bitcoin ETF. According to the filing, U.S. Bank will hold all of the Trust’s Bitcoin, either directly or through a sub-custodial relationship. The primary objective of the Trust is to provide investors with exposure to the price movement of Bitcoin, while accounting for expenses and operational liabilities. To achieve this, the Trust will acquire and hold Bitcoin as its underlying asset
Altcoins riding the wave despite Bitcoin dominance
Bitcoin dominance is currently at a two-year high of 51%. The metric measures the ratio of its market cap to the cumulative market cap of cryptocurrencies. Currently, Bitcoin has a market capitalisation of $571bn while the total cryptocurrency market capitalisation is about $1.15trn.
Although Bitcoin’s dominance has increased, altcoins are also riding the recent wave to record significant gains.
At the time of writing, Ethereum gained 7.2% in the past 24 hours. Cardano, Litecoin, and Polygon have recorded double-digit percentage gains in the same timeframe.