Bitcoin experienced a 9.8% weekly increase, the largest since June, driven by speculation of an impending approval of the first US ETFs that directly invest in the cryptocurrency. This rally also positively influenced other cryptocurrencies, as Ether increased by 3.3%. The surge typically indicates an average 10% rise in Bitcoin in the following month, according to historical patterns.
Asset management giants BlackRock Inc (NYSE:BLK). and Fidelity Investments are vying to launch a spot Bitcoin ETF (TSX:EBIT) in the US, a move that could potentially bring more institutional capital into the expanding crypto market. Market analyst Tony Sycamore predicts a Bitcoin ETF will receive approval before the end of the year, strengthening Bitcoin's mid-term position. He further noted that recent changes in Federal Reserve speakers' stance on interest-rate hikes have been beneficial to Bitcoin.
In related news, Larry Fink, CEO of BlackRock, has shifted from his previously negative view on Bitcoin in 2018. He now refers to it as 'digital gold' and a 'flight to quality', indicating its evolution into a safer investment. This change in attitude, coupled with increased client interest in Bitcoin, may encourage large-scale investors to explore crypto investments, potentially triggering a market uplift.
This shift could also benefit both established and emerging coins such as Ethereum, Binance, and Doge Uprising ($DUP), which is preparing for presale. The latter might be viewed as a lower-risk opportunity due to the changing sentiment in the investment landscape.
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