Bitrabo Editorial
Bitcoin is experiencing a strong rally as it surpasses $29,000 for the first time since May 7. This surge in price is largely attributed to the entrance of institutional players like BlackRock into the crypto market. However, this rally may just be the beginning, as other institutional players are also looking to establish their presence in the industry.
WisdomTree Files For Bitcoin ETF
Following the news of BlackRock and Fidelity filing for a Bitcoin Trust and ETF, another player has joined the race. WisdomTree has filed for a Bitcoin Trust with the United States Securities and Exchange Commission (SEC). If approved, WisdomTree plans to list the trust on the Cboe BZX exchange, allowing institutional investors to gain exposure to BTC through the trust. This trust could potentially compete with the Grayscale Bitcoin Trust (GBTC), which is currently the largest BTC trust globally.
Although WisdomTree may not be as big as BlackRock, the firm manages around $94.7 billion in exchange-traded funds and products worldwide, making it a significant player in the space. The trust will offer shares based on the pricing of the CF Bitcoin US Price, which aggregates the flow of BTC from spot exchanges. Therefore, if approved, the trust would operate similarly to the coveted Bitcoin Spots ETFs.
BTC price sets sights on $29,000 | Source: BTCUSD on TradingView.com
Institutions Pushing Price Of BTC
BlackRock’s filing for a Bitcoin ETF has been one of the main drivers behind the current BTC rally. The filing by WisdomTree could further boost the price as it signals the entrance of more institutional investors into the sector. The potential influx of funds from these approved ETFs presents a strong bullish case for Bitcoin.
According to Thielen Markus, an analyst at Matrixport, “The SEC’s probability of approving the Blackrock Bitcoin ETF is high. The ETF might be approved by September/October 2023 and will attract $10 billion within 3 months and $20 billion within 6 months – materially supporting Bitcoin prices.” If the ETF is approved, BTC’s rally could extend into September and potentially propel the price towards $40,000. Approval of BlackRock’s ETF also increases the likelihood of similar approvals for Fidelity and WisdomTree, leading to a potential volume flow into BTC exceeding $50 billion.
Currently, BTC continues to attract attention due to the news about BlackRock. It is trading above $28,800 at the time of writing, with a volume of over $28 billion in the last 24 hours.