The $9 trillion asset manager, and the biggest in the world, BlackRock, has recently filed for a Bitcoin (BTC) exchange-traded fund (ETF) in the U.S. market thus, generating new waves in cryptocurrency. Investors and industry experts have noticed the action, with many considering it a game-changer for the sector.
Larry Fink, CEO of BlackRock, expressed his enthusiasm for the file, saying it would “democratize crypto” by making Bitcoin more accessible to regular investors. Fink claims that by developing a BTC ETF, “those making investments may gain exposure to the digital coin without having to buy and hold it directly.”The Securities and Exchange Commission (SEC) has a history of approving these financial instruments.
The SEC has approved 575 of the 576 ETF applications submitted throughout the years, which has led some people to hope that a BTC-related product may finally win regulatory approval. If approved, BlackRock’s Bitcoin ETF would join the ranks of other cryptocurrency-focused ETFs already offered in several countries, including Canada.
While commenting on this trend, Dimitar Dzhondzhorov, a cryptocurrency analyst with CryptoPotatoe, said that investors wanting exposure to digital assets have grown more fond of these ETFs. They benefit from the traditional structure and regulatory monitoring of ETFs while providing access to those assets.
Dzhondzhorov believes it would draw many fresh institutional and retail investors who have been reluctant to enter the cryptocurrency market because of its apparent complexity and unpredictability of regulations. He also believed that the ETF might aid in bridging the gap between established finance and the developing world of cryptocurrencies by offering a regulated and popular investment vehicle.
Market Recounts SEC’s Participation, Fink Reassures A Democratized Cryptocurrency Industry
Analysis on Fox Business shows that Bitcoin ETF might potentially increase trade volumes and liquidity in the cryptocurrency market. The demand for the underlying asset may increase as more investors obtain exposure to Bitcoin through the ETF, thus increasing its price. This might boost market sentiment generally and give Bitcoin more credence as a class of investable assets.
Information from the inside shows that SEC is reviewing BlackRock’s filing, and the cryptocurrency community and investors are eagerly awaiting a decision. If approved, the BTC ETF could mark a significant milestone in the mainstream adoption of cryptocurrencies, bringing Bitcoin one step closer to becoming a widely accepted investment option.
Many believe regulators will approve the ETF due to the SEC’s track record of supporting ETFs and the potential benefits it may bring to the market. BlackRock has been counted as one of the companies heavily hit by SEC regulations. Other affected companies include Fidelity, Grayscale, and CBOE – with CBOE and Fidelity being shut down.
The emergence of BlackRock’s latest interest in BTC ETF has been linked to the rising price of BTC, which has recently surged past the $30,000 price mark. In an interview with Fox Business, the BlackRock CEO, revealed that his mission in the company is to democratize the cryptocurrency industry and make it cheaper among investors.
According to Fink, “It is expensive to conduct a transaction on Bitcoin today.” Fink confessed that the reason behind the heavy attack on the bitcoin is because it has been subjected to huge money laundering activities. He urged the regulators to look into his submission, insisting it is the first step to democratizing the cryptocurrency industry.
