BlackRock is particularly interested in cryptos, but also in ETFs. A few months ago, the company notably launched an ETF in Europe. This time, it is a Bitcoin ETF that interests him. Nothing guarantees the outcome of this procedure which could have significant effects on the flagship crypto market.
A 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 that filtered this Thursday, June 15, the company would have filed a request to this effect with the SEC.
According to an anonymous source close to BlackRock, the conversion of cryptos held by the ETF should be handled by Coinbase Custody. It is a cryptocurrency custody service offered by the crypto firm Coinbase.
For the time being, none of the stakeholders involved in this project has confirmed this information. Even confirmed by the companies involved, it is not certain that the procedure will succeed. The SEC has so far blocked all similar moves.
Still, BlockRock’s Bitcoin ETF application is at stake. To understand it, you have to touch with your finger what an ETF means and especially its implications.
ETF is an abbreviation of “Exchange-Traded Fund ». It is strictly speaking a fund. A fund traded on an exchange, and whose performance in terms of price is correlated to the price of a specific asset.
The ETF pursues a single objective: to promote the acquisition of units of a fund without having to buy the asset in question directly. The rule thus mentioned applies entirely to the Bitcoin ETF. And that is the whole point of the latter for investors.
What would be the impact of the Bitcoin ETF on the price of crypto?
Based on the previous explanations, it follows that the Bitcoin ETF could be beneficial for users. Because, following its principle, the Bitcoin ETF would be the ideal way for institutional investors to access bitcoin in a regulated manner.
That said, the Bitcoin ETF could attract a number of cautious institutional investors to invest in bitcoin for regulatory reasons in particular. We could then see an increase in demand for bitcoin.
By the dynamics of supply and demand, a rise 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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