BlackRock's Shock Move Triggers $16M Disaster for Bitcoin Bears

BlackRock, a major finance company, might create a Bitcoin investment product (ETF) that could make Bitcoin more popular in the US.

News of this possible Bitcoin ETF by BlackRock made many traders feel positive. Reports said that BlackRock wants to start a Bitcoin ETF, with Coinbase holding the Bitcoin. This was confirmed when BlackRock's iShares division filed some documents for a Bitcoin ETF.

The CEO of CF Benchmarks, Sui Chung, said that the BlackRock's ETF could make Bitcoin more user-friendly and accessible for most Americans who don't yet own any Bitcoin. He added that BlackRock's involvement shows that Bitcoin continues to attract big global finance companies.

Bitcoin's price went back up to $25,500 on Friday, after dropping to $24,860 in the past two days. This increase was also good for other major cryptocurrencies like Polygon Network's MATIC and Cardano's ADA, which also recovered from a two-day drop. Dogecoin (DOGE) and Litecoin (LTC) were the major tokens that gained the most, rising by 4% and 3.3% respectively.

The rise in Bitcoin's price led to over $16 million worth of short-term Bitcoin investments being closed in the past 24 hours. This amount was lower than usual because of big decreases last week, which made traders invest less money.

Previous efforts to start a Bitcoin ETF by other fund managers have been turned down by the SEC, including those by Grayscale, VanEck, and WisdomTree. But, because BlackRock is so well-known, the SEC might find it harder to reject this proposal. If the SEC approves, this could lead to a big increase in Bitcoin's popularity.