Bitrabo Editorial
BlackRock, the world’s largest asset manager with $9.57 trillion in assets under management (AUM), has applied for a Bitcoin spot ETF. This has created bullish sentiment in the market, with experts believing that the application has a high chance of approval due to BlackRock’s political connections and successful track record with ETF applications. So far, the US Securities and Exchange Commission has approved 575 out of 576 applications, making BlackRock’s application seem promising.
In addition to BlackRock’s application, there are rumors circulating that Fidelity, the third-largest asset manager, is also planning to apply for a spot Bitcoin ETF and/or make a bid for Grayscale, the troubled leading crypto asset manager.
The source of this rumor appears to be Arch Public co-founder Andrew Parish, who has spread the news on Twitter. Notable crypto influencers such as Scott Melker, Michaël van de Poppe, and Ash Crypto have also shared this rumor.
According to an anonymous source, Fidelity is preparing to make a “seismic move” in the crypto markets. Parish tweeted:
UPDATE: Fidelity Digital Assets and Fidelity are about to make a seismic move in crypto via both BTC and ETH. Sources expect Fidelity to either make a bid for Grayscale or quickly launch their own spot Bitcoin ETF. One or both are coming, soon. **Blackrock and Fidelity will own the crypto space in the US.
Race For A Bitcoin Spot ETF
Fidelity is no stranger to the Bitcoin and crypto space, as the third-largest asset manager. In 2018, Fidelity launched Fidelity Digital Assets (FDA), a separate company focused on cryptocurrencies. FDA offers various crypto products and was the first company to allow investors to add crypto assets to their 401(k) retirement accounts. Furthermore, FDA launched the Fidelity Advantage Bitcoin ETF in Canada in December 2021.
The rumored bid for Grayscale is significant as well. Grayscale’s parent company, Digital Currency Group (DCG), has faced financial troubles and opacity. Grayscale’s Bitcoin Grayscale Trust (GBTC) holds over 630,000 BTC and is considered DCG’s major revenue source.
A potential bankruptcy of DCG and Grayscale was feared in the past, which could have had a negative impact on the market. However, if Fidelity were to rescue Grayscale and address the GBTC discount, it would have a bullish effect on Bitcoin and crypto.
Overall, the entry of BlackRock and Fidelity into the Bitcoin market is seen as a positive development, boosting prices and bringing legitimacy to the industry. Similar to what happened with gold after the US approved its first spot ETF in 2004, Bitcoin may experience a significant price increase in the coming years.
As of now, the BTC price is $26,444, rebounding from the 200-day EMA (blue line).
Featured image from The Boston Globe, chart from TradingView.com