BlackRock is set to become the first asset manager to launch a fund that tracks the price of Bitcoin.
Although the SEC has never approved any spot Bitcoin ETF, crypto enthusiasts are quite positive about this one. So if successful, then BlackRock will become the first asset manager to launch a fund that tracks the price of bitcoin.
In all of this anticipation, however, the most probable gainers would be the institutional investors. Presently, institutional investors are not legally permitted to buy cryptocurrencies. But all of that could change once BlackRock secures the approval, thereby offering Wall Street a legal and cheap way to access the token.
Wall Street Anticipates BlackRock’s Bitcoin ETF
The interest of Wall Street in the approval of BlackRock’s application might be understandable. Initially, BlackRock’s push appeared odd considering that the crypto industry is just recovering from what came to be a fatal 2022 for Bitcoin and other cryptocurrencies. However, Bitcoin has managed to stage a comeback in 2023. And by gaining over 80% to hit the $30,000 mark, investors are now bracing for a potential bull run.
For Wall Street though, they would not want a repeat of 2021’s miss. Recall that as of early 2021, most top banks still took a somewhat hostile approach to digital assets. Their stance at the time meant that they missed out on a massive run of gains that saw Bitcoin’s (BTC) price quadruple within a year, and brought the entire crypto industry to be valued at over $2 trillion.
But now, with BlackRock filing for its ETF off the back of another looming rally, Wall Street will seek to tap into the opportunity.
Speaking about his firm’s recent laser focus on spot ETF, CEO Larry Fink has likened the token to “digital gold”. According to Fink, Bitcoin has all the potential to “revolutionize” finance.