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BlackRock To File Application For Bitcoin ETF
Rumors suggest that the world's largest asset manager may be working to launch a spot bitcoin ETF.
New York-based investment firm BlackRock is reportedly on the verge of filing an application for a Bitcoin ETF.
The financial giant, which has $8.6 trillion in AUM, will reportedly partner with Coinbase for custody and spot pricing.
Information is sparse, and it's unclear whether this would be a spot or futures ETF. However, the rumors are that it's spot; there is, of course, the question of why they would need Coinbase to manage custody for a futures ETF.
This would be a dramatic development in the crypto space, which suffered a vicious bear market through 2022, followed by a regulatory onslaught in recent weeks.
Spot ETFs are generally considered superior to futures ETFs by the crypto community, because they require the asset manager to hold "physical" BTC: That is, they feed through to the underlying market, rather than relying on paper contracts. A physical or spot bitcoin ETF could therefore prove a huge bullish catalyst.
Approval for a bitcoin ETF would be a game-changer. It would be the most straightforward and regulated way for institutional capital to invest in bitcoin, something that is currently almost impossible for many big organizations, opening the door to potentially many trillions of dollars of inflows in the coming years. It would also signal legitimacy for bitcoin, since BlackRock is the world's largest asset manager.
It's also an interesting development to surface now, given that Coinbase has recently been the subject of enforcement action from the SEC. Moreover, the SEC has proven to be extremely hostile to crypto enterprises of all kinds, and has repeatedly delayed and denied applications for BTC ETFs in the past.
BlackRock is a heavy hitter, and if anyone can get the job done, they're the ones. It also sounds a rare note of confidence in the crypto industry from big players, who have taken an interest in bitcoin but typically keep their cards close to their chest.
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