Bitrabo Editorial
According to a report by Coindesk, BlackRock, the world’s largest asset manager, is getting closer to filing an application for a Bitcoin (BTC) Exchange-Traded Fund (ETF) in the United States.
An anonymous source familiar with the matter stated that BlackRock plans to use Coinbase Custody for the ETF and the cryptocurrency exchange’s spot market data for pricing.
Will BlackRock’s ETF Filing Drive Bitcoin’s Price Higher?
This news has sparked speculation in the cryptocurrency community that a Bitcoin Spot ETF from BlackRock could have a bullish impact on the digital asset’s price.
An ETF is an investment vehicle that tracks the performance of an underlying asset, such as stocks, commodities, or in this case, Bitcoin. A BTC ETF would hold Bitcoin and track its price movements, allowing investors to gain exposure to Bitcoin without directly holding the digital asset.
The potential approval of a BTC ETF from BlackRock is significant for two reasons. Firstly, it would make investing in Bitcoin easier for institutional investors who have been hesitant due to regulatory concerns and infrastructure challenges. Secondly, approving a BTC Spot ETF could increase demand for Bitcoin, potentially driving up its price.
It is worth noting that the Securities and Exchange Commission (SEC) has previously rejected all applications for a spot Bitcoin ETF, only approving Bitcoin futures ETFs for trading. Whether BlackRock’s application will succeed under the current regulatory environment remains uncertain.
BlackRock has not commented on the reports of its Bitcoin ETF application, and Coinbase has declined to comment.
Overall, the possibility of a BTC ETF from BlackRock is a significant development for the cryptocurrency industry. If approved, it could positively impact Bitcoin’s price and potentially help it overcome resistance levels and break its current downtrend.
As of this writing, BTC has dropped to the $24,700 mark but quickly bounced back above $25,000 and is currently consolidating above this key level.
Featured image from Unsplash, chart from TradingView.com