Increasing sentiment for cryptocurrencies: Blackrock and US federal court bring positive change

Increasing sentiment for cryptocurrencies: Blackrock and US federal court bring positive change

The sentiment for cryptocurrencies has changed noticeably in recent weeks. The world's largest asset manager Blackrock and an American Federal Supreme Court are responsible for this.

On July 20, 2023, Ripple (XRP), who, after market capitalization, has now almost dined to double the cryptocurrency within a few hours. A judge in the United States found that Ripple could not be classified as a classic security in the sense of the US case law. The US stock exchange supervision SEC had recently seen this assessment differently. The news also led to increased sales in this country. XRP was the most traded cryptocurrency on July 13th.

The US stock exchange supervision SEC must decide on applications by February 2024. Experts assume that the chances of approval will be higher this time, since surveillance agreements were made with the large stock exchanges. Some experts even consider a quick approval to be possible this year. In the event of a positive decision, market observers expect similar impulses to the introduction of the first gold ETPs in 2004. Bitcoin could become a standard portfolio mixture for many asset managers.

The increased interest in cryptocurrencies is also evident in the numbers. Within four weeks, $ 742 million flowed into crypto products worldwide. The trade volumes for investment products rose to $ 2.3 billion, which is above the annual average. Products were particularly in demand on the Bitcoin, while there were drainage at Ether. In June, tributaries of $ 144 million were recorded in June, more than in the entire year 2022.

Certificates on crypto-basis values also experience a growth in demand. The trade in crypto certificates rose by 51 percent, with the Bitcoin being the driving force behind it. Most shops were made in products in which investors benefit from rising courses in the underlying. The open end of participation certificates on Bitcoin and Ether.

The increased interest of institutional investors and asset managers as well as the positive court decisions have significantly improved the sentiment for cryptocurrencies. Market observers expect further positive developments and possible recordings of cryptocurrencies in institutional portfolios in the coming months. It remains to be seen how the SEC decides on the applications of the asset managers and what effects this will have on the cryptom market.

Author: Thomas Koch
Date: July 20, 2023
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