Why Bitcoin, Bitcoin Cash, and Bit Digital Are Rising Today – The Motley Fool


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Cryptocurrencies and crypto stocks continued their ascent higher today as institutional interest in the space has sparked a major rally.
Since late afternoon yesterday, the price of the world’s largest cryptocurrency, Bitcoin (BTC -0.40%), traded roughly 3% higher as of 2:07 p.m. ET today and had surpassed $31,100 as of this writing.
Meanwhile, the price of Bitcoin Cash (BCH -2.71%) had exploded by close to 29%, while the price of the Bitcoin-mining company Bit Digital (BTBT -2.64%) was up roughly 4.4% on the day after having been up by close to 12% at one point earlier.
Ever since BlackRock (BLK 0.51%) filed to launch a spot Bitcoin exchange-traded fund (ETF), the sector has rallied, and that excitement did not lose steam today, largely as analysts continued to point to what a catalyst it could be if BlackRock receives approval from the U.S. Securities and Exchange Commission (SEC). 
Image source: Getty Images.
In a recent research note, JPMorgan Chase analysts wrote:
Should BlackRock or other firms be successful in this endeavor for a spot Bitcoin ETF, this may incite competition for spot-Bitcoin ETFs, incentivize firms to create other spot-crypto ETFs, and/or pave the way for other crypto productions that incorporate traditional financial instruments.
Bitcoin Cash also continued its impressive run, which was sparked by news earlier this week that the crypto exchange EDX Markets had gone live and is offering Bitcoin Cash as one of the cryptocurrencies on the platform. EDX is backed by Charles SchwabFidelity, and Citadel, showing another foray into the digital asset space by mainstream financial giants.
In other news today, the U.S. Supreme Court ruled in favor of the large U.S.-based crypto exchange Coinbase (COIN 0.79%) in what is apparently the court’s first big crypto ruling. The case involved a Coinbase user suing the company after money in his account was allegedly stolen.
The matter had sparked a class action lawsuit that was proceeding until the Supreme Court put the case on pause, as Coinbase seeks to take the matter to arbitration. The Supreme Court also dismissed another case in which users claimed that Coinbase breached false advertising laws in California by advertising a contest that allowed users to win prizes in the form of the meme token Dogecoin.
While the cases may not have huge ramifications for the industry, they could hint at a pro-crypto tilt for the court, which could be helpful down the line.
In an article published today by Forbes, Coinbase’s Chief Legal Officer Paul Grewal told the publication, “We’re prepared to rely upon the courts because we think it’s critical to the future of our industry.” Coinbase and Binance were recently sued by the Securities and Exchange Commission.
The crypto industry still seems to be benefiting from all of the good news about traditional financial giants diving further into the space, which I think is giving investors confidence because the moves, if successful, would likely broaden exposure to Bitcoin and other cryptocurrencies. The Supreme Court’s decision is also likely to give investors confidence about battles that are likely coming down the road.
I think Bitcoin is worth having exposure to and will end up appreciating on more of a long-term basis. But I’m not really that bullish on Bitcoin Cash or Bit Digital. I own a little Bitcoin Cash but purchased it a while ago and prefer the largest cryptocurrencies like Bitcoin right now.
The Bitcoin miners benefit when Bitcoin does well but are ultimately more volatile in an already volatile industry. 
Bram Berkowitz has positions in Bitcoin and Bitcoin Cash. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy.
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