Cryptocurrencies gain as institutional interest piqued
Tuesday was another strong day for cryptocurrency prices and those reported on Monday as being potentially supported by Coinbase’s expansion were among the best performers.
Coinbase’s boost was given further oomph by the announcement on Monday that BlackRock, the world’s largest exchange-traded fund (ETF) provider, was forming a working group to assess potential investment in bitcoin futures, according to a report in Financial News, which cited two people familiar with the matter.
This would represent something of a volte face given the position of BlackRock’s chief executive Larry Fink, who told Bloomberg Television on Monday that its clients had no interest in cryptocurrencies.
“I’ve not heard from one client who says, ‘I need to be in this’,” Fink said in Monday’s interview.
Yet it seems to be excitement about the potential entry of institutional players into the crypto market that is driving prices this week.
The newsflow is full of hints that exchanges are making ready: Coinbase has received regulatory approval to become a licenced securities broker-dealer. Others are following in its footsteps. Meanwhile, XTRD is launching a platform specifically designed for onboarding institutional investors.
Here’s a round-up of the price action during late morning trade in London on Tuesday:
- Bitcoin was up 4.8% at $6,712
- Ethereum was 3.9% higher at $473.70
- Ripple gained 6.2% to $0.48
- Bitcoin cash rose 7.7% to $793.71
- Eos climbed 7.1% to $7.93
- Litecoin added 1.9% to $83.48
- Stellar lumens gained 3.3% to $0.23
- Cardano climbed 0.8% to $0.15
- Iota gained 2% to $1.07
- Tether was flat at $1