Crypto has a new rescuer: Wall Street

Some of the biggest names in finance are making new bets on cryptocurrencies, adding competition and momentum to an upstart industry that is under increasing pressure from US regulators. One of the world’s biggest hedge funds, Citadel Securities, is backing a new cryptocurrency exchange along with Fidelity Investments and Charles Schwab (SCHW), two other sizable money managers. These endorsements from institutions that have a track record on Wall Street are helping to push the value of cryptocurrencies higher, especially bitcoin (BTC-USD).

The world’s largest cryptocurrency rose to its highest price in a year on Friday, to $31,389, after climbing above $30,000 for the first time since April. Through Friday bitcoin had risen 81% year to date. Other cryptocurrencies also surged this week, including ether (ETH-USD) and Avalanche’s AVAX (AVAX-USD) token. The total market capitalization for crypto assets reached $1.2 trillion on Friday, 14% higher than where it stood a week earlier. This new interest from mainstream financial institutions comes at a time of rising peril for an industry that struggled to regain its footing following the 2022 implosion of cryptocurrency exchange FTX and the regulatory crackdown that followed.