IMPORTANT POINTS:
- Cryptocurrency Fluctuation: False rumors about iShares Bitcoin ETF approval by the SEC cause volatility in the prices of $BTC, $ETH and $XRP.
- BlackRock and the Digital Age: The financial giant BlackRock shows growing interest in cryptocurrencies, using JPMorgan’s blockchain technology and betting on the tokenization of assets.
- Bright Future for Bitcoin: Anthony Scaramucci of SkyBridge Capital predicts that Bitcoin’s market capitalization could reach 15 trillion, far exceeding its current value.
Major cryptocurrencies experienced a roller coaster ride in prices this week. Rumors, which turned out to be false, about the US Securities and Exchange Commission (SEC) approval of the iShares Bitcoin ETF caused this stir. These rumors not only impacted $BTC but also altcoins such as $ETH and $XRP.
Expensive Rumors in the Crypto Market
In the midst of the effervescence, liquidations worth more than 100 million occurred in just 60 minutes. Although these rumors briefly catapulted the price of BTC, BlackRock CEO Larry Fink has interpreted this movement as a sign of “latent interest in cryptocurrencies.” Furthermore, Fink linked this rally to a search for refuge due to “the current problems related to the conflict in Israel and terrorism worldwide.”
BlackRock: Hearing the Call of Cryptocurrencies
The financial world has expressed interest in the crypto space, and BlackRock has been no exception. Fink highlighted that the firm’s global clients are showing “growing demand for cryptocurrencies.” BlackRock, recognized as the largest asset manager globally, has begun to further explore the crypto sector. They recently took a significant step by employing JPMorgan’s blockchain collateral settlement system, a move that Fink says represents “the future generation of financial markets.”
Tokenization: The New Frontier
CoinDesk reported that BlackRock has used JPMorgan’s Ethereum-based Onyx platform to tokenize shares of a money market fund. These shares were traded with Barclays in an OTC derivatives transaction in London.
The revolutionary blockchain technology behind Bitcoin and other cryptocurrencies offers the possibility of creating digital tokens that symbolize conventional assets in a distributed ledger. This promises to revolutionize transfers of a variety of assets, from bonds and stocks to alternative investments such as real estate and art.
According to reports from Forbes, both BlackRock and JPMorgan are expected to lead the next boom in the world of cryptocurrencies, positioning digital assets such as Bitcoin, Ether, and XRP in a prominent place.
BlackRock: Betting on the Digital Future
Larry Fink, in previous communications, had already highlighted the disruptive potential of this technology. In one of his annual letters to shareholders, he noted interesting developments in the digital assets segment.
Last June, BlackRock began the process of launching a Bitcoin ETF. This move appears to have started a chain reaction, with other market players putting forward similar proposals. Large financial entities, which collectively manage more than 27 trillion in assets, are setting their eyes on the crypto world and competing to be the first to list a Bitcoin ETF in the US.
To conclude, according to information from CryptoGlobe, Anthony Scaramucci, founder and principal partner of SkyBridge Capital, shared his optimistic outlook on Bitcoin, suggesting that its market capitalization could rise to 15 trillion, which would be a monumental leap from its current capitalization of 540 billion.
