BlackRock, the titan of global asset management, is on the brink of submitting an application for a Bitcoin ETF (Exchange Traded Fund), a move that promises to make significant waves in the cryptocurrency market. This development comes directly from a well-informed source, who has chosen to remain anonymous.
The ETF will leverage Coinbase’s renowned Custody service and the crypto exchange’s spot market data for pricing. This strategic partnership between BlackRock and Coinbase was forged in the previous year, aiming to provide institutional investors with direct access to cryptocurrencies. However, it is yet to be revealed whether the proposed ETF will be spot or futures-based, and BlackRock has not yet officially commented on the matter.
It is crucial to note that this is a bold move, considering the Securities and Exchange Commission’s (SEC) track record in this sphere. So far, the SEC, which governs ETFs in the U.S., has turned down every application for a spot bitcoin ETF. However, it has greenlit several bitcoin futures ETFs for trading.
Larry Fink, the CEO of BlackRock, in his annual letter to shareholders, underscored the company’s ongoing exploration of the digital asset ecosystem, specifically focusing on aspects highly relevant to their clients such as permissioned blockchains and the tokenization of stocks and bonds. Fink noted, “Very interesting developments are happening in the digital asset space”. This comes after Fink’s previous year prediction that blockchain technology, the backbone of cryptocurrencies, is set to usher in “the next generation for markets”.
Simultaneously, Fidelity Investments, another financial giant, has thrown open its crypto trading platform to its massive user base of 37 million, enabling them to buy and sell Bitcoin and Ethereum free of commission. This move further fuels the momentum in the crypto market, setting the stage for a potential bull run.
Cryptocurrency markets are known for their cyclical nature, surging to new highs before experiencing sharp pullbacks, only to soar even higher again. Market watchers are now eyeing Bitcoin’s next halving event, where the flow of new Bitcoin creation will be cut by half. This halving, scheduled for late April 2024, is seen as a potential catalyst for the next surge in Bitcoin prices.
In conclusion, BlackRock’s impending filing of a Bitcoin ETF, in conjunction with significant moves from other financial players like Fidelity, is laying the groundwork for an exciting phase in the crypto market. The anticipation is high, and the crypto world waits with bated breath for the landmark decision from the SEC.
Robert J. Smith is still early into his career as tech reporter but has already had his work published in many major publications including JoyStiq and Android Authority. In regards to academics, Robert earned a degree in business from Fordham University. Robert has passion for emerging technology and covers upcoming products and breakthroughs in science and tech.
