Good morning. Here’s what’s happening:

Prices Bitcoin surged above $30.7K before settling closer to $30K, as investors enjoyed news of multiple spot bitcoin exchange-traded funds.

Insights Crypto markets have been experiencing a “crisis of confidence” but recent filings by eToro U.S. analysts for bitcoin ETFs has helped energize the crypto market, according to Callie Cox, an investment analyst at eToro.


Bitcoin returns to its perch above $30K

After weeks of doom, bitcoin surged a second time in a row as investors gained confidence after BlackRock and large asset management firms applied for spot BTC ETFs.

Recent trading of the largest cryptocurrency based on market capitalization saw it trade at around $30,140. This is an increase of nearly 5% in just 24 hours. BTC was last able to cross the $30,000 mark in April.

After the long U.S. holiday weekend of Juneteenth, bitcoin began to rise on Tuesday as markets digested more fully the impact the BlackRock filing. Invesco’s and WisdomTree’s spot bitcoin refilings later in the day brightened the mood, providing the latest evidence that institutional investors are growing interested in the crypto-space, despite the markets struggling amid an uncertain regulatory climate, pesky inflation, and other macroeconomic problems.

Read more: Invesco Reapplies to Bitcoin ETF and Advocates for More Crypto Investment Product

In an email sent to CoinDesk, Nihar Neelakanti wrote: “There’s a wave in the crypto market, now that the big institutions are trying to get involved in the industry.”

Neelakanti noted that there were “rumors” that Fidelity may also file for an ETF. A Fidelity representative told CoinDesk on Tuesday that the company had not announced its plans to file. Invesco has $1.4 trillion of assets under management. It filed its application with Galaxy Digital, a digital asset manager. WisdomTree’s first spot Bitcoin ETF application was rejected by the Securities and Exchange Commission in 2022.

Neelakanti wrote: “These players and other big names are going to add a great deal of liquidity to this market, making investors more confident in buying bitcoin again.” “Big institutions partnering up with crypto will continue to be a catalyst for bitcoin in the near future, despite the U.S. regulating situation continuing to cause some difficulties for the industry.”

Ether had a similar upbeat day on Wednesday, continuing its momentum. For the first time in 3 weeks, the second-largest crypto by market value changed hands above $1900, an increase of more than 6% compared to Tuesday. ADA, MATIC, native cryptos from smart contract platforms Cardano, and Polygon each rose more than 7% on the day, as did memecoin DOGE. CoinDesk Market Index is a measure for crypto market performance. It was up over 5% recently.

U.S. stock prices have retreated from their recent winning streaks, with tech stocks leading this decline. The Nasdaq Composite, which is heavily dominated by technology, and the S&P 500 closed down 1.2% and 0.5% respectively. Asia opened with a downbeat note, as the Hang Seng index and Shanghai index fell by about 2% and 1,3% respectively.

Ecosapiens Neelakanti is of the opinion that TradFi, a company specializing in digital assets, will use “regulatory stress on crypto” as an opportunity to launch new initiatives. However, he does not know if these partnerships are of long-term value. He also added that each crypto “wave” attracted new participants.

He wrote: “The last phase was retail speculators. This fits into a pattern that shows how asset classes evolve over time.” “You start with early adopters, then you have more retail investors, and finally, the third wave is when more institutions join the fold. Now we’re beginning to see the first signs of the third phase. This wave will also include 401Ks, pension funds and university endowments.

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Crypto’s “Crisis of Confidence”, and the Rush of Spot Bitcoin Exchange Traded Fund Filings

Callie Cox of eToro’s social investing platform, “First Mover”, told CoinDesk TV on Wednesday that cryptos are “going through a confidence crisis.” However, the “rush of bitcoin ETF filings” in the last week has brought “some excitement” back to the markets, particularly for “well-known” quality coins such as Bitcoin and Ethereum.

Cox stated that “institutional lenders are where this industry is growing, whether you want it or not.” “The fact that the biggest issuers are now stepping up and saying ‘we would like to offer this product’ shows you the pent-up or unmet demand of investors who may not feel comfortable trading crypto on the spot market.”

The iShares division of fund manager BlackRock (BLK ) submitted paperwork to the U.S. Securities and Exchange Commission for the creation a spot Bitcoin ( BTC ) ETF. Investment management companies Invesco and WisdomTree re-filed for spot ETFs earlier this week.

IVZ, with $1.4 trillion in assets under management, works together with digital asset manager Galaxy Digital. It filed its first spot bitcoin ETF application in 2021. In a wave of rejections, the Securities and Exchange Commission rejected WisdomTree’s first application for 2022.

This surge of institutional interest came after the ongoing U.S. Regulatory scrutiny reached new heights in early this month, with SEC suits against Binance and Coinbase. The markets were left in a funk.

Investors pondered inflation, the SEC’s increased scrutiny and other macroeconomic uncertainties as they viewed the rise of bitcoin, ether, and other major assets. BTC dropped below $25,000 recently for the first since mid-March. Even as the overall environment has become cloudy, institutional interest in bitcoin and other cryptocurrencies continues to grow.

Cox believes that the ETFs are “a positive signal” and the market as well. It shows that Wall Street believes in some parts of crypto, and that the price of Bitcoin will not go to zero. We must understand the value. “There is value.”


Important events.

3:00 p.m. SGT/HKT (7:30 UTC) Swiss National Bank Rate Decision

7:00 pm HKT/SGT (11:00 UTC) England Monetary policy summary


CoinDesk TV

If you haven’t seen it yet, here is the latest episode of CoinDesk TV .

Bitcoin (BTC), by far the largest cryptocurrency in the world, has rallied over the last 24 hours, after traditional finance companies announced their entry into the crypto markets, showing a bullish sentiment. Callie Cox, an eToro US analyst, shared her analysis of the crypto market. Lindsey Grossman from Bitkey, Block’s bitcoin wallet, also joined “First Mover”. She discussed the team-up with Coinbase, Cash App and the launch of Bitkey’s external beta signups. Sergey Gorbunov, CEO and cofounder of Axelar, shared his thoughts on the recent Uniswap Foundation bridge assessment report.

Bankrupt Hedge Fund 3AC’s Return as a Venture Capital Stirs Up Crypto Community : 3AC’s co-founder Kyle Davies said to CoinDesk the new entity is aimed at providing support for projects building towards a decentralized future.

Circle restarts U.S. Treasury purchases in BlackRock’s USDC Reserve Fund : Circle’s Chief Financial Officer said during a Wednesday company call that repurchase agreements would continue to be part of the USDC Reserve Fund.

MakerDAO Boosts U.S. Treasury Holdings By $700M To Back DAI Stablecoin with Real-World Assets This purchase is the latest move to increase the role that real-world assets play in the platform’s DAI reserve.

“Storage proofs” Touted as Alternatives to Hack-Prone bridges in Multichain World : Storage Proofs, a new feature that will allow users to minimize cross-chain attacks by allowing them to keep their assets and prove they are there on another chain, is going live soon on Starknet.

Polygon Introduces AI Interface Powered by ChatGPT to Aid App Developers: The artificial-intelligence interface, called Polygon Copilot, will help developers obtain analytics and insights for their applications on the Polygon blockchain.

James Rubin is the editor.