Bitcoin's price returns over $ 7,000 on the growing support from Wall Street


Wall Street's growing support is encouraging Bitcoin bulls. As a result, the large capital of financial institutions could soon enter the encrypted market.

Investing in digital gold

Bitcoinist reported yesterday that Goldman Sachs is moving to solve Bitcoin's main obstacle to institutional investors: custody. This happens immediately after other companies such as the operator of the New York Stock Exchange (NYSE) and Starbucks who try to enter into cryptocurrency with a new digital goods trading platform, dubbed Bakkt.

But this week could provide a bit more bullish news for the price Bitcoin 0 0 as the US Securities and Exchange Commission (SEC) could finally approve a fund traded on the Bitcoin exchange (ETF) this Friday.

 Bitcoin Broker Behavior

The possibility of a Bitcoin ETF is once again at the forefront. The SEC is now considering whether to approve a petition presented by the global investor VanEck and SolidX Partners Inc. To make the determination, the SEC will meet on 10 August 2018.

In June 2018, VanEck and SolidX announced that they were joining forces to list a physically supported Bitcoin ETF. This ETF must be insured against the loss or theft of Bitcoin. As reported by Bussiness Wire Jan van Eck, Managing Director of VanEck said:

I think the bitcoin has emerged as a legitimate investment option, as a type of "digital gold" that it could make sense for investors' portfolios. "And, he added," The SolidX team has an in-depth experience with bitcoins, cryptography and capital markets.

VanEck and SolidX had already filed petitions separately. VanEck presented the petition for a Bitcoin ETF in August 2017, while Solidx deposited it in March 2016.

Institutional investors now have custody options

In addition to Goldman Sachs and several Swiss banks, Coinbase it is already improving custody services for its institutional clients, so they can securely store large amounts of cryptocurrencies.

On August 3, 2018, Coinbase announced that it was exploring the possibility of adding over 30 new cryptocurrencies, such as XRP, NEO, EOS and Monero to Coinbase Custody.

Financial experts see the challenge as the biggest obstacle. The lack of adequate custody discourages the participation of financial institutions, hindering the flow of large sums into the encrypted market. In this regard, Robert Dykes writes:

Global institutional investors have 130 trillion dollars in assets under management. A small slice of what turns into a crypt will have a huge positive impact on an industry whose market capitalization remains below $ 300 billion

But, according to Dykes, to attract this type of money into the market, " The crypto industry must provide the facilities and tools to which these great players are accustomed to. "

So, the Bitcoin bulls are thrilled that big names like Coinbase, Goldman Sachs and a growing number of traders they are starting to embrace the cryptocurrency space.

Do you think that the resolution of custody problems will cause the release of large sums in the cryptography market? Let us know in the comments below.

Images courtesy of Shutterstock, Bitcoinist archive

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