Shares in Bitcoin got a boost Monday following news reports that some of the biggest and most influential investors are beginning to embrace digital currencies.
Shares of Bitcoin, the largest crypto-coin, rose 3% to US$6,371 per share on the London Stock Exchange Monday. Rival cryptocurrencies such as Ripple, Ethereum and Litecoin also climbed at least 2%. Bitcoin hasn’t notched a one-day gain of at least 2% since July 2.
The shot in the arm for Bitcoin came after news reports that BlackRock Inc. has formed a team to look into ways the world’s largest asset manager can take advantage of the cryptocurrency market and blockchain. The company said afterward in a statement that its focus was largely on blockchain, the technology underlying Bitcoin.
Last week, billionaire investor Steven Cohen put money into a hedge fund that focuses exclusively on cryptocurrencies and blockchain-based companies. In Europe, the owner of Switzerland’s securities exchange in Zurich said it’s creating a platform for trading digital assets.
Such news runs counter to the popular perception that cryptocurrencies are a fledgling investment vehicle viewed by many large investors as nothing more than gambling and as a means of funding illicit online activities.
