Cryptocurrencies hit a three month low price point through June and early July, but prices started to pick up swiftly on 16 July amid reports that major investor, BlackRock, is considering entering the cryptocurrency market.
Bitcoin rose throughout late July, while Ethereum also picked up. Ripple saw a hike of 4.67% to end the day of the announcement at $0.467241, and Litecoin jumped by 7.09%. The average price rise for all the cryptocurrencies was about 8%, as investor confidence seemed to increase throughout the day.
It’s being rumoured that the cryptocurrency market will soon see a huge rise due to funding from a major investor, which London sources are claiming will be BlackRock. It’s said that the investment house has developed a department which will specifically look at cryptocurrency investments and blockchain technology.
BlackRock is a US-owned global investment firm and manages $6.288tn. It is the tenth biggest hedge fund in the world.
It’s alleged that the investment firm is studying whether to invest in Bitcoin futures. The working group is also tasked with maintaining a close watch on competitor investments into blockchain and cryptocurrency. This is all good news for cryptocurrencies as the prize of a major institutional investor joining the market will help stabilise prices in the future.
A spokesperson for BlackRock commented: “Like most financial institutions, BlackRock has a working group that meets periodically to exchange information on blockchain and consists of employees from various parts of the business. We have been looking at blockchain technology for several years, recognising potential for shared processes and data across market participants, clearing, settlement and reconciliation and simplified securities issuance.”
It’s understood that the cryptocurrency market is proving appealing to a host of hedge funds, so don’t be surprised to learn of more major investors taking up a position in the market.
A senior market analyst at eToro commented: “It definitely is causing some excitement. The idea of big financial firms moving into crypto certainly isn’t new and this is a trend we’ve been noticing gaining strength since November.“