- BlackRock took a huge step in joining the cryptocurrency industry by applying for a Bitcoin
Spot ETF with the US Securities and Exchange Commission (SEC).
- The COVID-19 pandemic, followed by central bank monetary policies and the price increase of BTC in 2020 and 2021, changed the game and created significant interest in the cryptocurrency industry, especially in BTC.
- In the bear market of 2022, many institutions stepped back, but BlackRock made more ventures and became even stronger.
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BlackRock, the largest asset manager in the world based in the US, has applied to the SEC for a spot Bitcoin ETF; BlackRock’s timing is quite interesting!
BlackRock Takes Action for Bitcoin ETF
This week, BlackRock, the world’s largest asset manager, took a huge step in joining the cryptocurrency industry by applying for a Bitcoin Spot ETF with the US Securities and Exchange Commission (SEC).
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Due to the majority of previous applications for similar products made by other companies being unsuccessful, the community wonders whether BlackRock’s venture is doomed from the start. However, this giant company has been progressing with an unprecedented success rate with the SEC.
The COVID-19 pandemic, followed by central bank monetary policies and the price increase of BTC in 2020 and 2021, changed the game and created significant interest in the cryptocurrency industry, especially in BTC. At that time, it was almost expected that almost every week a new institution or individual legacy investor would announce buying Bitcoin. Despite initial hesitation, BlackRock made small investments through CME and some executives made encouraging statements.
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In the bear market of 2022, many institutions stepped back, but BlackRock made more ventures and became even stronger. It made several ventures, including a Blockchain ETF in Europe.
BlackRock, along with Coinbase, took its biggest step in the US by applying for a Bitcoin Spot ETF, and Coinbase will be the custodian of these funds. This move had an instant positive impact on BTC and its price, which increased by more than $2,000 in the first few days after the application. If this ETF is approved, the long-term results could be even more beneficial for the entire industry.
According to Bloomberg’s chief ETF analyst Eric Balchunas, their chances are quite high, at least historically. BlackRock has an incredible success rate with the SEC in ETF applications – 575 approved applications and only 1 rejected application.
So, What Will Happen to Bitcoin ETF in the US?
Although the SEC has approved several Bitcoin Futures ETFs, it has rejected numerous applications for Spot Bitcoin ETFs. The endless rejections even led Grayscale, which tried to convert the BTC product into an ETF, to file a lawsuit against the SEC.
The institution’s reasoning has always been the same, claiming that the proposed ETFs have not demonstrated how they will prevent market manipulation and fraud.
In addition, the SEC has currently attacked many cryptocurrency exchanges and cryptocurrencies, claiming that most assets are unregistered securities. However, even SEC Chairman Gary Gensler acknowledged in the past that BTC is a commodity.
In any case, BlackRock’s timing is quite interesting because the SEC generally has a negative attitude towards the industry.