Bitcoin and Ethereum Show Signs of Recovery Amid ETF Developments

The two largest cryptocurrencies, Bitcoin and Ethereum, have experienced a rise in their values this week, following news about BlackRock’s Bitcoin exchange-traded fund (ETF) proposal and unexpected developments from China. As of Thursday, Bitcoin was trading at approximately $26,400, reflecting a 0.5% increase, while Ethereum saw a 1.7% increase, trading around $1,600.

Cameron Winklevoss, the billionaire co-founder of the New York-based cryptocurrency exchange Gemini, cautioned earlier this week that the chance to purchase Bitcoin before ETF “floodgates” open is diminishing quickly. He indicated that the entrance of institutional investors would resemble an initial public offering (IPO) for Bitcoin.

Winklevoss’s comments followed Bitcoin’s price surge beyond $30,000, matching its level from March prior to a crackdown on cryptocurrencies led by U.S. authorities. This increase contributed to a boost of approximately $100 billion in the combined market capitalization of Bitcoin, Ethereum, and other cryptocurrencies within a week.

On June 26, the U.S. Securities and Exchange Commission (SEC) approved the first leveraged Bitcoin futures ETF, with the Volatility Shares 2x Bitcoin Strategy ETF set to launch on the Chicago Board Options BZX Exchange the following day. Other major financial firms, including Invesco, Wisdom Tree, and Valkyrie, have also submitted their applications for Bitcoin spot ETFs to the SEC, following BlackRock’s lead.

In related news, SEC Chair Gary Gensler testified before Congress this week regarding the SEC’s approach to cryptocurrency regulation in the United States, which has sparked intense discussions with House representatives about the SEC’s stance on the digital assets ecosystem.