Bitcoin price surged above $28,000 on investor excitement over requests from BlackRock and Fidelity Investments for spot BTC ETFs, fueling the dream of a BTC price recovery. Bitcoin price rose on June 20, hitting a 14-day high of $28,103. This recent surge came amid negative news about the SEC targeting Binance and Coinbase, and bullish traders hope that BTC can break its 10-week losing streak. One of the main factors driving this growth appears to be the growing interest in Bitcoin from financial institutions, such as BlackRock and Fidelity Investments, which appear to be in the process of filing for spot Bitcoin ETFs.
Here are some reasons why Bitcoin price is rising today.
BlackRock ETF demand causes Bitcoin price to surge
The price of Bitcoin started to rise after BlackRock filed an application for a spot BTC ETF in the United States on June 15. While BlackRock is not the first to file such an application with the SEC for a Bitcoin ETF, it is the largest of all current applicants.
So far, the SEC has refused to approve a spot Bitcoin ETF, despite numerous applicants, including Cathie Wood's ARK and 21Shares, which has filed for approval three times. Another company that was turned down for a Bitcoin ETF is Grayscale. After the rejection, the company took the SEC to court to argue the validity of Bitcoin futures. BlackRock is the world's largest asset manager, with more than $8.5 trillion in assets under management. According to the filing with the SEC, the firm will also use Coinbase for BTC custody in the trust.
The demand also gave a boost to the Grayscale ETF. The discount is approaching the maximum of 2023, being below 37%. Traders see the falling US dollar index as a positive factor for the Bitcoin price
Another positive sign for the Bitcoin price is the decline in the US Dollar Index (DXY). Historically, when the DXY pulls back, sentiment for risk assets such as Bitcoin increases. Since interest rate hikes were halted by the Federal Reserve last week, some market participants believe the US economy could grow and the dollar could continue to fall. If this happens, Bitcoin could continue to rise alongside the stock markets.