Investing.com – Bitcoin rose Monday as signs of institutional demand renewed investor appetite for cryptos.
Bitcoin rose 4.70% to $6,666.5 on the Bitfinex exchange, from a low of $6,711.0.
BlackRock reportedly confirmed that it was preparing to set up a working group to look into cryptocurrencies and blockchain, raising investor appetite for cryptos amid expectations that a bigger role by institutionals would further legitimize cryptos as an asset class on Wall Street.
"We are a big student of blockchain,” BlackRock CEO Larry Fink said. He added, however, he does not see "huge demand for cryptocurrencies."
Interest in cryptos from Wall Street has gathered pace in recent months as Fidelity, one the biggest Wall Street firms, revealed plans last month to create a suite of products that would push the market for bitcoin to the next level.
The entrance of institutional investors to the crypto industry may not be the panacea many believe, however, according to a letter published from the San Francisco Federal Reserve earlier in the year.
The San Francisco Fed noted in May that the launch of bitcoin futures, which attracted institutional interest, contributed to the selloff in bitcoin as it paved the way for traders to bet against the popular crypto.
The renewed interest in crypto saw inflows return to the market, raising the total market cap by billions of dollars, underpinning a rally in the broader market.
The total market cap of cryptocurrencies rose to about $269 billion, at the time of writing, from about $245 billion last week.
Ripple XRP rose 5.79% to $0.47400 on the Poloniex exchange, while Ethereum rose 5.39% to $477.51.
Bitcoin Cash rose 10.42% to $804.08, while Litecoin rose 5.15% to $83.11.