Blackrock ETF effect: As at the time of writing Bitcoin is trading at $34,615 – up more than 13% over 24 hours.

BTC has experienced a significant surge in its market value, breaking through the $34,000 barrier. This surge is closely linked to developments in the Bitcoin spot ETF market, with Blackrock and Grayscale at the forefront of the action.

Blackrock has achieved a key milestone by obtaining a CUSIP, signaling its preparation for the launch of a spot Bitcoin ETF. Moreover, there are indications that the firm may invest their own capital into the ETF, highlighting their confidence in the product. (Investing.com)

Grayscale, on the other hand, has concluded its legal battle with the SEC regarding the conversion of its Bitcoin Trust to a Bitcoin spot ETF. This paves the way for potential future approval, even though the SEC retains the right to reject the application after a subsequent review.

Institutional demand for Bitcoin remains high, awaiting the approval of a spot Bitcoin ETF, such as by Blackrock. Ernst & Young’s blockchain leader, Paul Brody, notes that trillions of dollars are poised to enter Bitcoin once such an ETF is sanctioned by U.S. regulators. He emphasizes that institutional investors view Bitcoin as an asset rather than a payment tool, making ETF approval a crucial catalyst for their entry.

Meanwhile, Matrixport, a crypto financial services company, reiterated its prediction that Bitcoin’s price could reach $45,000 by year-end. The resurgence in Bitcoin’s price, driven by expectations of a spot Bitcoin ETF approval, has bolstered this forecast.

Matrixport even suggests that approval of a Blackrock spot Bitcoin ETF could trigger further price increases, potentially propelling Bitcoin to $56,000. The firm is of the view that even modest allocations out of gold ETFs and into the spot Bitcoin ETF, as well as favorable recommendations from the RIA community, could unleash a bull trend in the king coin.

Related Story: Grayscale Files Application For New Spot Bitcoin ETF Preparatory To Conversion And Listing Of Its Bitcoin Trust

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