Blackrock (NYSE: $BLK) is one of the investment giants and the world’s largest asset manager. The company provides a wide range of financial services, including investment management, risk management, and advisory services, to institutional and individual investors worldwide.
They recently showed interest in a Bitcoin exchange-traded fund and filed an application for it. With this, Blackrock could offer more diversified and alternative investment opportunities for investors.
In this article, we will discuss Bitcoin ETF, Blackrock application, and its working.
What Is Bitcoin ETF?
Bitcoin ETF appeared as an unique financial instrument for investors in cryptocurrencies. Furthermore, the investors can gain exposure to Bitcoin price movement by investing in Bitcoin ETF without owning or storing the digital asset itself. One of the reasons why Bitcoin ETF stands out is because of robust and well-organized investing structure for the investors.
Moreover, It allows investors to regularly buy and sell their shares through publically-traded securities. By investing in Bitcoin ETF, investors do not have to worry about storage and security, unlike some cryptocurrency exchanges that operate in less regulated environments. Additionally, it is suitable for the investors seeking direct exposure to the underlying asset.
Blackrock Bitcoin ETF Working In Future
On 15th June, 2023, Blackrock, pioneered fund manager, filled an application for spot Bitcoin ETF with a purpose to provide investors with to easy-to-trade funds, that can also help them track the price of Bitcoin closely.
They filed for spot Bitcoin ETF rather than future ETFs because of suitable Bitcoin price tracking and affordable fees. Future ETFs have expiry dates, which include extra expenses, and could have different dynamics for investors in the future. Spot Bitcoin BTF tracks the current price of the assets rather than showcasing price predictions, that might be changed in the future unlike future ETFs.
The launch of Blackrock spot Bitcoin ETF will make it more suitable for investors to track price movements with more affordable investment options. In addition, it will enhance the overall experience of the investors in crypto world.
SEC Delaying Blackrock Spot Bitcoin ETF Application
The US SEC (Securities and Exchange Commission) has delayed all filed applications for spot Bitcoin ETF, including Blackrock, VanEck, Wise Origin, Bitwise, and Wisdom Tree. SEC had delayed it till October, but a spokesperson of Blackrock said that
“The iShares Spot Bitcoin ETF application is still under review by SEC.”
According to Wall Street Journal, the price Bitcoin touched approximately $30K after the fake rumors spread across the news about SEC accepting Blackrock Spot Bitcoin ETF application.
There is 50% of the SEC accepting applications for Blackrock Bitcoin ETF, according to the statement made by Bloomberg senior ETF analyst Eric Balchunas in his tweet.
Impacts of Blackrock Bitcoin ETF on the Cryptocurrency World
A lot of companies have shown interest in Bitcoin ETF, including Blackrock. When it was newly launched, we all witnessed the Bitcoin price pump. Therefore, it will have a lot of impact on the cryptocurrency world. Let’s discuss them, respectively.
Investors Engagements
A BlackRock Bitcoin ETF would make it easier for traditional investors to gain exposure to Bitcoin. Institutional and retail investors widely use ETFs, and they offer a more straightforward and familiar way to invest in Bitcoin compared to buying and storing it directly.
Liquidity
The approval of Blackrock Bitcoin ETF could result in significantly increase liquidity of the Bitcoin market. ETFs are traded on traditional stock exchanges, and this could attract more institutional and retail investors to the cryptocurrency market.
Risk Mitigation
Due to volatility and high liquidity, most of the investors and companies would feel more comfortable investing in Blackrock spot Bitcoin ETF. They might reckon see this as a way to mitigate the risks associated with holding and managing cryptocurrencies themselves.
Price of Bitcoin
As mentioned, a fake rumour about the approval of Blackrock spot Bitcoin ETF resulted in a price pump of Bitcoin last week. Therefore, it is highly predicted that Bitcoin might go in bullish trend if SEC approves the application.
The Bottom Line
There is a high chance of approval of Blackrock spot Bitcoin ETF application, which will impact the cryptocurrency market. If you want to read more news related to cryptocurrency and stocks, please make sure to visit Dexwirenews.com!
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