Bitcoin hits new highs in more than 30 currencies as institutions move in and crypto exchanges boost services
DATA from CryptoCompare shows that the price of Bitcoin moved decidedly upward throughout the past week, starting it at around $50,000 and surging to now trade at around $65,000 amid growing demand from the recently launched spot Bitcoin exchange-traded funds (ETFs).
Ethereum’s Ether - the second-largest cryptocurrency by market capitalisation - moved in a similar way, starting at around $3,000 per ETH a week ago and moving up to now trade at $3,500 per token.
Bitcoin’s price rise hasn’t seen it surpass the $69,000 all-time high the cryptocurrency recorded in November 2021, but when priced in different fiat currencies throughout the world, industry analysts note BTC has already made new all-time highs in more than 30 countries.
BTC’s price surge came amid a strengthening US dollar, reflected in the 10.7% rise of the US dollar index (DXY) since November 2021, which means that other fiat currencies have lost against the USD, making Bitcoin appear comparatively more valuable in those markets.
Countries in which Bitcoin reached new all-time highs include China, Japan, Ukraine, the United Kingdom, and India. These highs came during a week in which spot Bitcoin ETFs saw their trading volumes reach new records.
During a single day over the past week, the day Bitcoin’s price surpassed $64,000, trading volumes topped $7.7 billion, with BlackRock’s IBIT ETF also shattering its own record after seeing $3.3 billion worth of shares change hands.
According to Bloomberg Intelligence senior ETF analyst Eric Balchunas, IBIT climbed to the fourth place in the most traded U.S. ETFs during the day, joined by three other spot Bitcoin ETFs in the top 20.
Research from the analyst posted over this past week also noted that spot Bitcoin ETFs are threatening to overtake gold ETFs when it comes to assets under management. The analysts wrote: “The Bitcoin ETFs, though barely six weeks old, have taken in over $8 billion more than gold peers, already have 40% as much in assets and could pass them in size in less than two years.”
Over the week, it was also revealed financial services giant Morgan Stanley is reportedly exploring the possibility of offering spot Bitcoin ETFs on its brokerage platform, although it remains unclear which specific ETFs it may choose to offer.
Notably, $3 billion investment advisory firm Carson Group announced it approved only four of the ten spot Bitcoin ETFs. The approvals included BlackRock’s and Fidelity’s ETFs, with the group’s vice president and investment strategy citing “significant asset growth” and trading volumes as factors behind the selection.
A report from cryptocurrency exchange Bybit over the week revealed a distinct investment trend emerging between institutional and retail investors in the digital asset space. The report, based on surveys conducted with traders on the platform, indicated a growing preference for Ether among institutional investors, with Bitcoin remaining the dominant choice for retail participants.
The study highlights a significant shift in institutional allocation strategies, with their holdings in BTC and ETH now encompassing roughly 80% of their total cryptocurrency portfolios. This increased concentration reflects growing institutional confidence in these two established digital assets.
Gemini to return $1.1 billion after NYDFS settlement
Over the week, in a settlement with the New York State Department of Financial Services (NYDFS), cryptocurrency exchange Gemini agreed to return at least $1.1 billion to customers affected by the collapse of crypto lender Genesis Global Capital. The funds will be recovered through the ongoing bankruptcy proceedings of Genesis.
The NYDFS levied a $37 million penalty against Gemini, citing compliance failures that “threatened the safety and soundness of the company", according to Superintendent Adrienne A Harris.
The settlement, if approved by the bankruptcy court, promises full restitution for affected users. They are expected to receive their cryptocurrency assets back in their original form, along with any accrued interest, which at market value translates to nearly $2 billion, exceeding the $1.1 billion committed by Gemini.
Meanwhile, cryptocurrency exchange Kraken launched a new institutional solution consolidating its existing offerings. The solution, called Kraken Institutional, bundles services like spot and over-the-counter trading, along with crypto staking for clients outside the United States, as it aims to cater to asset managers, hedge funds, and high-net-worth individuals seeking exposure to the digital asset industry.
This past week also saw Nasdaq-listed cryptocurrency exchange Coinbase expand its asset recovery tool to include BNB Chain and Polygon. The tool has, since launch, reportedly helped over 10,000 users recover more than $160 million.
Francisco Memoria is a content creator at CryptoCompare who’s in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies.
