- The US SEC has formally accepted the revised application of the spot Bitcoin ETF by BlackRock.
- BlackRock CEO Larry Fink noted an increasing interest in cryptocurrencies among gold investors.
The world’s largest asset manager BlackRock created a major buzz in the crypto space last month by filing the spot Bitcoin ETF and driving a massive 20 percent plus Bitcoin price rally. With the world’s largest asset manager stepping into the crypto market, analysts believe that this could be a game-changer for the crypto industry.
A Bitcoin ETF would mirror the value of Bitcoin, enabling investors to invest in the ETF without the challenges of directly owning Bitcoin. This Bitcoin ETF would trade on a stock exchange just like a regular stock.
BlackRock’s entry into the crypto space could attract a pool of investors to invest in the crypto space leading to massive inflows worth thousands of billions of dollars. With BlackRock itself holding more than $8.5 trillion in assets under management, its influence on the global financial markets is substantial.
In the latest development, the U.S. Securities and Exchange Commission (SEC) formally accepted BlackRock’s spot Bitcoin ETF application last week. BlackRock filed the application for the iShares Bitcoin Trust last month. However, the SEC signaled that BlackRock’s application was lacking.
Later, BlackRock revised its application adding a “surveillance sharing” clause that would involve possible monitoring of crypto exchange Coinbase and reporting any suspicious activity. Other applicant such as Valkyrie, Fidelity, and Ark Invest also updated their application. Along with BlackRock, the SEC has also formally accepted the Bitwise spot Bitcoin ETF application for official review, last week.
BlackRock’s Larry Fink on Crypto Industry
In an interview with CNBC last week, BlackRock’s Larry Fink said that they have the responsibility to “democratize investing” and that a spot Bitcoin ETF could help them achieve this. “We’ve done a great job, and the role of ETFs in the world is transforming investing. And we’re only at the beginning of that,” Find said.
SEC’s previous rejections of similar funds changed with BlackRock’s involvement and the proposed surveillance-sharing agreement, indicating a shift in momentum for the crypto industry. Fink said:
We are working with our regulators because, as in any new market, if BlackRock’s name is going to be on it, we’re going to make sure that it’s safe and sound and protected.
Furthermore, the BlackRock CEO also stressed the rising demand for crypto from Gold investors. Larry Fink noted an increasing interest in cryptocurrencies among gold investors in the past five years. He compared the impact of ETFs on gold accessibility to their potential effect on the crypto market. Fink highlighted the fluctuation of the US dollar and suggested that an international crypto product could serve as a hedge against such changes.
“That’s why we believe there are great opportunities and why we’re seeing more and more interest. And the interest is broad-based and worldwide,” added Fink.
