American investors are increasingly flocking to Bitcoin BTC/USD as major financial institutions ramp up their engagement, bolstering the cryptocurrency's recent surge.
This information was highlighted by K33 Research, a cryptocurrency analytics firm, in one of their reports, Coindesk reported.
Bitcoin witnessed a remarkable 85% surge this year, outshining the majority of the cryptocurrency market.
This positive trend is attributed to the growing involvement of financial giants such as BlackRock Inc BLK, Fidelity and Citadel, which has been a catalyst in boosting investor confidence.
On the other hand, alternative cryptocurrencies have faced difficulties in the wake of heightened regulatory investigations, particularly concerning their status as unregistered securities.
Consequently, trading platforms have exercised caution and limited the availability of popular tokens in order to circumvent potential risks.
The report also shed light on Bitcoin's appreciable gains during U.S. market hours, amassing approximately 30% in cumulative gains since plummeting to around $16,000.
Interestingly, the U.S. market outperformed its Asian and European counterparts.
The activity in the U.S. witnessed a significant spike after BlackRock, the world-renowned asset management firm, submitted an application for a Bitcoin spot exchange-traded fund on June 14.
The SEC rejected the application today (June 30) as being inadequate. BlackRock can resubmit if it wishes.
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Bitcoin has also lately shown signs of disassociation from the U.S. stock markets, including the S&P 500 and Nasdaq.
According to K33, Bitcoin's 30-day correlation with these markets turned negative last week, marking the first such instance since January 2021.
Vetle Lunde, a senior analyst at K33, mentioned that "This illustrates that U.S. traders are allocating in BTC due to idiosyncratic reasons" and suggested that this could be a move towards portfolio diversification.
BlackRock's proactive steps have played a significant role in reinvigorating institutional participation in the Bitcoin market.
The Chicago Mercantile Exchange (CME), which is popular among seasoned investment companies, witnessed open interest approaching its peak, as indicated by K33's data.
Additionally, digital asset funds reported inflows of $199 million last week, the highest in nearly a year, with Bitcoin-focused funds accounting for 94% of these inflows.
This was revealed in a separate report by asset management company CoinShares.
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