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Bold bet by BlackRock: Bitcoin ETF

Fri 16 Jun 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed Crypto regulation

BlackRock is particularly interested in cryptocurrencies, as well as ETFs. A few months ago, the company launched an ETF in Europe. This time, they have set their sights on a Bitcoin ETF. There is no guarantee that this process will be successful, but it could have significant effects on the flagship cryptocurrency market.

A bitcoin coin and the words "ETF Bitcoin".

BlackRock files for a Bitcoin ETF in the United States

BlackRock, the world’s largest asset management company, wants a Bitcoin ETF. According to information leaked on Thursday, June 15, the company has reportedly filed an application with the SEC.

According to an anonymous source close to BlackRock, Coinbase Custody, a cryptocurrency custody service offered by Coinbase, is expected to handle the conversion of cryptocurrencies held by the ETF.

For now, none of the parties involved in this project have confirmed these details. Even if confirmed by the companies involved, it is uncertain whether the process will be successful. The SEC has so far blocked all similar attempts.

Nevertheless, the introduction of a Bitcoin ETF by BlackRock carries significant implications. To understand this, we need to grasp the concept of an ETF and, more importantly, its implications.

ETF stands for “Exchange-Traded Fund.” It is essentially a fund that is traded on the stock exchange and whose price performance is linked to a specific asset.

The main objective of an ETF is to facilitate the acquisition of shares in a fund without the need to directly purchase the underlying asset. This rule applies fully to the Bitcoin Exchange-Traded Fund, and that’s where the stakes lie for investors.

What would be the impact of a Bitcoin ETF on the cryptocurrency’s price?

Based on the explanations given above, it follows that a Bitcoin ETF could be advantageous for users. Following its principle, a Bitcoin Exchange-Traded Fund would be the ideal way for institutional investors to access Bitcoin in a regulated manner.

Moreover, the Bitcoin Exchange-Traded Fund could attract many risk-averse institutional investors who have refrained from investing in Bitcoin due to regulatory concerns, among other reasons. This could lead to an increase in the demand for Bitcoin.

Through the dynamics of supply and demand, a rise in the price of BTC could occur. The ultimate question now is whether BlackRock’s application for a Bitcoin ETF will be successful.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.