Good or bad? Bitcoin ETF BlackRock While the crypto market is all green, amid the news about the BlackRock ETF, I decided to write a post about it.
On December 15, two, the largest US company CME Group launched Bitcoin futures.
CME is the only one who provides the opportunity to trade bitcoin futures in the United States and they are the first to enter the area of derivatives instrument for the cryptocurrency market.
A week ago, BlackRock applied for approval of the Bitcoin ETF.
BlackRock is an American international investment company headquartered in New York. One of the largest investment companies in the world and the largest in the world in terms of assets under management. As of the end of 2022, assets under management were $8.59 trillion.
The probability of this application being approved by Blackrock is quite high
Relying on historical data on SEC decisions regarding Blackrock's various ETF applications.
BlackRock has an astounding success rate: 575 applications approved versus just one rejected.
However, not everyone shares such a quick optimism. The fact is that in addition to the positive statistics on the SEC's approval of applications for various ETFs by Blackrock, there are also negative statistics on how many other applications just for bitcoin-ETFs the SEC rejected.
The first attempts to register a Bitcoin ETF were made back in 2014 by the Winklevoss twin brothers. Since then, there have been more than 30 attempts to create a spot exchange-traded fund for bitcoin, but all applications have faced opposition from regulators, who cited market problems and a lack of investor protection.
Among those rejected :
Vaneck, one of the world's leading asset management companies. In March of this year, the company received its third consecutive rejection from the SEC to launch a spot ETF on bitcoin. SEC refusals to launch such investment products always report that there is no regulated cryptocurrency market, which means companies, including VanEck, simply "do not have joint oversight agreements with a regulated spot market of significant size for bitcoin trading."
ARK is the investment firm of well-known investor Katie Wood. In April of this year, Ark Invest, along with Swiss company 21Shares, again attempted to coordinate a spot exchange-traded bitcoin fund with the U.S. Securities and Exchange Commission. They already have two failed attempts under their belt.
Grayscale, a company that manages cryptocurrency trusts and other investment products. The company is suing the SEC over its refusal to convert its own fund, the Grayscale Bitcoin Trust (GBTC), into an exchange-traded fund (ETF). GBTC is now the best-known solution for buying bitcoin. However, shares of this fund are not allowed to trade on the first-tier stock exchanges, with Grayscale charging a management fee of about 2% per year, while traditional ETFs have a fee of 0.5%. Last year, the SEC approved a cryptocurrency ETF, but only for futures markets. It's a much more complex and expensive product for investors.
"Another theory is that BlackRock may be aware that the SEC may lose the Grayscale case, and is going to play ahead to be prepared for the case to be lost and then suddenly open the way for a bitcoin ETF."
Assuming the answer is yes, what happens afterwards?
I interpret this news positively in the long run, because new big money will come to the cryptocurrency industry, and a lot of new things await us.
BUT
I think like last time, there will be another good entry point into the market formed for the big players. Thereby we may see the very corrective movement till September, November, and in these dates there will be already dispersed information about future halving, etc. and then there will be a real bull run first of all for Bitcoin.
Read about where I expect the bottom of the correction in this post
Best regards EXCAVO
