Following Bitcoin ETF Fervor initiated by BlackRock, one of the largest asset management companies, the crypto market last weekend was bullish as soon as the news, Bitcoin Leveraged ETF by Volatility Shares was approved by SEC last Friday, was delivered on the market. Bitcoin (BTC) hit a year-to-date-high, $31259, and several DeFi projects glimpsed of DeFi Summer 2023.
The ETF is 2X leveraged and will be launched on 27th June. A prospectus filing said the price of the ETF will be based on the CME Bitcoin Futures Daily Roll Index. Prior to the significant spike on the 23rd, cryptocurrency analysis tool CoinGlass reported the liquidation of approximately $24 million worth of short positions in the Bitcoin market. This event can be attributed to the surging of BTC. Additionally, on-chain analysis company Glassnode highlighted that the rise in Bitcoin's price from $25,000 to the $30,000 range resulted in 96.9% of short-term holders profiting from their positions. This situation could potentially raise concerns about increased selling pressure.
Amidst the consecutive bullish sector for bitcoin, the altcoin market, in particular DeFi Projects, showed a significant price increase. According to CoinMarketCap, UniSwap, AAVE, Compound and some DeFi assets experienced double-digit gains ever since the resurgence of Meme Coin in May 2023. DappRadar has observed a recent increase in on-chain activity among several DeFi dApps. DappRadar noted that the number of unique wallets interacting with Aave has increased by 28% this month. Similarly, Lido has seen a 17% increase in wallet engagement, while Convex Finance has grown by more than a third.
Following BlackRock's filing for a spot bitcoin ETF in the US on the 15th, WisdomTree, Invesco, and Valkyrie Funds have also filed. These applications are believed to have given a boost to Crypto Summer. "The cryptocurrency market has experienced a crisis of confidence. However, the spot application for a bitcoin ETF is bringing vitality to the market," said Curry Cox, a US investment analyst at eToro. It is worth noting that BlackRock has received regulatory approval for 575 ETFs so far, with only one rejection.
By Shota Oba - Digital Currency & Blockchain Division Correspondent at YNBC