Will the BlackRock Bitcoin ETF will be a game changer? BlackRock, the world’s largest asset manager, has recently made a significant move by filing for a Bitcoin spot ETF inspiring other companies like Invesco, Wisdom Tree and Bitwise to follow suit.
With over $9 trillion of assets under management, BlackRock’s announcement has fuelled a rally in Bitcoin, propelling it past the $30,000 mark. However, considering the Securities and Exchange Commission’s (SEC) track record of rejecting more than 30 spot Bitcoin ETFs, the approval of this particular filing remains uncertain. If approved, it raises questions about the future of the Bitcoin market, the altcoin market, and the potential consequences of large institutional investors gaining significant control over Bitcoin. Does such concentrated power align with Bitcoin’s mission of decentralisation?
In this recent interview, Ran Neuner, Founder and Host of Crypto Banter, joins Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, to discuss the possible repercussions.
Here is an extract from the interview. To gain in-depth insights, listen to the full version here:
Michelle: Let’s start off with the basics. A Bitcoin spot ETF is an exchange traded fund that tracks the price of Bitcoin. How exactly would Blackrock’s Bitcoin ETF work?
Ran: Some viewers may know that there is already a Bitcoin Futures ETF. The difference between a Bitcoin futures ETF and an actual Bitcoin spot ETF is that the spot ETF actually holds the physical Bitcoin as part of the ETF structure. You can think of it as a trust fund that actually just holds Bitcoin and allows investors to buy shares and get access or exposure to Bitcoin through this ETF. It’s essentially an easy way to get access to spot Bitcoin.
Michelle: If the filing does happen what do you see happening to Bitcoin pricewise?
Ran: I think it could be a game changer. I’m not going to give you the excited crypto bro answer because right now the crypto bros are all looking at this chart and saying if you look at this little arrow, that is where the GLD ETF was launched by BlackRock and look what happened to Gold after that. It went up five times in seven years which for gold is actually a good record. For crypto that’s considered just a day in the life of. I believe it’s a very positive thing for Bitcoin.
Don’t miss this revealing discussion and catch Ran’s concluding thoughts on whether Bitcoin’s price will hit an all-time high if the filing is approved.
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