Bitcoin (BTC) rallied to a new 13-month high above $31,500 early Thursday morning before a pullback to the current $31,100, up more than 2% for the day. The world’s largest cryptocurrency by market value has traded above $30,000 for a couple of weeks, but has struggled to reach the $32,000 level. “For the bitcoin rally to continue, we will need to get confirmation that the SEC will grant permission for a spot-Bitcoin ETF in the U.S,” said Edward Moya, senior analyst at Oanda. The top gainer among large-cap cryptos on Thursday, however, is bitcoin cash (BCH), up more than 12%, and continuing a big run higher following its listing on EDX Markets which is backed by Fidelity, Charles Schwab and Citadel Securities. Gains could continue in July as data from TradingView shows this month is historically a good one for cryptos. One year ago in July, BCH rose 34%, while BTC advanced 17%.

BlackRock CEO Larry Fink said crypto, specifically bitcoin, could revolutionize the financial system in an interview with Fox Business on Wednesday. “We do believe that if we can create more tokenization of assets and securities – that’s what bitcoin is – it could revolutionize finance,” he said. Previously known to be a skeptic of crypto, Fink years ago suggested fans of the asset class heavily used it for “illicit activities.” Fink continued: “Instead of investing in gold as a hedge against inflation, a hedge against the onerous problems of any one country, or the devaluation of your currency whatever country you’re in – let’s be clear, bitcoin is an international asset, it’s not based on any one currency and so it can represent an asset that people can play as an alternative.”

Circle is considering issuing a stablecoin in Japan following legislation governing stablecoins in that country that took effect on June 1, the payment services company’s co-founder and CEO Jeremy Allaire said. In an interview with CoinDesk Japan, Allaire said that if stablecoins become more widely used for cross-border trade, foreign currency transactions and global commerce, Japan will become an extremely large market. Japan’s stablecoin bill makes it one of the first countries to establish a framework for the use of overseas stablecoins, which Allaire considers “the most important thing the government and the Financial Services Agency have done.”

Bitcoin’s (BTC) recent rally has revived concerns about a market peculiarity that puts traders of futures and futures-based exchange-traded funds (ETFs) at a disadvantage relative to coin holders.

The cryptocurrency topped $31,000 late last month, reaching the highest level in a year. Alongside the rally, the spread between prices for the Chicago-Mercantile Exchange (CME)-listed July futures contract and the now-expired (then front-month) June futures contract exploded to nearly $500, the highest gap since the bull market days of late 2021, according to data from charting platform TradingView.

The sharp widening of the spread, or the so-called steepening of the contango, has grabbed the attention of crypto trading desks. as it raises the cost of pre-expiry futures rollover, or the shifting of bullish long positions from front-month to next-month contracts. This, in turn, affects the performance of the futures-based products offered by ProShares, VanEck and others. Market observers believe this action is another reason underscoring the need for a spot bitcoin ETF.

– Omkar Godbole