Crypto FOMO is Back, and Wall Street Wants In
We’re halfway through 2023, and risky assets have had a tremendous start to the year. The tech-heavy Nasdaq index is up nearly 30% — while major crypto tokens have nearly doubled in value.
But the entire crypto industry is watching Bitcoin — which typically leads the market up in a bull market before Ethereum ($ETH) and smaller tokens begin to rise.
- $BTC is now up over 80% this year — even reaching a new 52-week high (but still down over 50% from its peak).
- Last week, crypto products had their largest single week of inflows since July 2022.
The momentum came from BlackRock’s Bitcoin ETF application — which was followed by other heavy-weights like Invesco and WisdomTree. And Edelman Financial Engines’ founder expects every major asset manager to launch one if the Securities and Exchange Commission (SEC) green-lights crypto ETFs (RIABiz).
The theory inside crypto…
BlackRock’s auspiciously-timed ETF application has several prominent crypto investors suspecting foul play — with one saying: “How can’t you think this entire past year was a giant inside job coordinated between the Wall Street parasites [and] government regulators so they could catch up…”
The SEC is still suing Coinbase and Binance — but the lawsuits haven’t scared Wall Street away. Last week, a new crypto exchange, EDX Markets, launched with the backing of financial giants like Citadel Securities and Fidelity Investments — filling a void left by the fall of FTX with a more catered approach to regulations.
- Citadel’s founder was once a public critic of the asset — and is already trading crypto on EDX.
- BlackRock’s ETF application is also a notable U-turn from its CEO Larry Fink’s prior stance on Bitcoin.
Watch: Cboe Digital’s president thinks traditional finance firms are the next big thing coming for crypto — but don’t forget… there’s a Bitcoin halving coming up. Bitcoin’s 2023 move could just be the prelude to 2024.