Bitcoin Cash (BCH) has seen a dramatic surge in value, rising by 108% over the past seven days, following BlackRock’s application for a Bitcoin spot ETF with the SEC and the launch of EDX Markets.
BlackRock‘s application to the SEC for a Bitcoin spot ETF has triggered a wave of similar applications, creating a bullish sentiment in the cryptocurrency market, particularly around Bitcoin and specific offshoot projects.
However, the launch of EDX Markets, a platform for institutional investors, appears to be the primary driver behind Bitcoin Cash’s recent price pump.
EDX Markets, backed by financial giants Fidelity, Schwab, and Citadel Securities, is not registered with the SEC but carries significant weight due to its high-profile backers. The platform lists only four cryptocurrencies: Bitcoin, Ether, Litecoin, and Bitcoin Cash. This exclusive listing has been interpreted by the market as a vote of confidence in Bitcoin Cash, particularly as the SEC intensifies its scrutiny of other blockchain projects.
A short primer on BCH
Bitcoin Cash was created in 2017 as a fork of the Bitcoin blockchain, a split designed to address disagreements within the Bitcoin community over scalability and transaction capacity. Two factions emerged: the big blockers and the small blockers, each proposing different solutions. The big blockers advocated for larger blocks of transactions, leading to the creation of Bitcoin Cash through a “hard fork” in August 2017. This split the Bitcoin blockchain, creating a separate ledger for Bitcoin Cash.
In 2018, Bitcoin Cash underwent a further split, resulting in the creation of Bitcoin SV (Satoshi’s Vision), led by Australian computer scientist and self-proclaimed Bitcoin creator Craig Wright.
The inclusion of Bitcoin Cash on a platform designed for institutional investors could signal a shift in market perception of the cryptocurrency. Despite its controversial origins and subsequent forks, Bitcoin Cash’s recent performance suggests that it is gaining traction among serious investors.
CryptoSlate reached out to both EDX Markets for comment but had not received replies at press time.
“We have filed a registration statement with the SEC, and due to regulatory filing restrictions, we are not able to provide further comment,” A BlackRock spokesperson told CryptoSlate.
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