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BlackRock is particularly interested in cryptos, but also in ETFs. A few months ago, the company launched an ETF especially in Europe. This time, it’s a Bitcoin ETF of interest. Nothing guarantees the outcome of this procedure which could have significant effects on the flagship crypto market.
Bitcoin ETF application filed by BlackRock in the United States
BlackRock, the world’s largest asset management company, wants a Bitcoin ETF. According to the information filtered this Thursday, June 15, the company would have filed an application with the SEC.
According to an anonymous source close to BlackRock, Coinbase Coinbase Coinbase should handle the conversion of cryptos held by the ETF. It is a cryptocurrency custody service offered by the crypto firm Coinbase.
For the time being, this information has not been confirmed by any of the interested parties involved in this project. Even if confirmed by the companies involved, it is not guaranteed that the procedure will be successful. The SEC has so far blocked all such moves.
Still, the BlockRock Bitcoin ETF application is in question. To understand it, you have to touch with your finger what ETF means and especially its implications.
ETF is an abbreviation for “Exchange Trade Fund ». It is strictly a fund. A fund that is traded on an exchange, and whose performance in terms of price is correlated with the price of a particular asset.
The Foundation is pursuing a single objective: to promote the acquisition of fund units without directly purchasing the asset in question. The rule thus mentioned applies entirely to the Bitcoin ETF. And that is the whole point of the second one for investors.
How would the Bitcoin ETF affect the price of crypto?
Based on the previous explanations, it follows that the Bitcoin ETF could be beneficial for users. Because, following its principles, the Bitcoin ETF would be the perfect way for institutional investors to access bitcoin in a controlled way.
That said, the Bitcoin ETF may attract some cautious institutional investors to invest in bitcoin for regulatory reasons in particular. We could then see an increase in the demand for bitcoin.
According to the dynamics of supply and demand, an increase in the price of BTC could therefore occur. The whole question now is whether the Bitcoin ETF application filed by BlackRock will succeed.
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A graduate of Sciences Po Toulouse and holder of a blockchain consulting certificate issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the blockchain’s ability to change many sectors of the economy, I took the commitment to raise awareness and to inform the general public about this ever-changing ecosystem. My goal is to enable everyone to better understand the blockchain and seize the opportunities it offers. I strive every day to provide objective analysis of the news, to understand market trends, to communicate the latest technological innovations and to put into perspective the economic and societal challenges of this ongoing revolution.
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The views and opinions expressed in this article are the sole responsibility of the author, and should not be considered investment advice. Do your own research before making any investment decision.
