This article briefly:
BlackRock’s spot Bitcoin ETF could be a game-changer for the crypto industry, but it’s still pending approval.
The news received a positive response from the crypto community, but doubts remain.
Some analysts believe that the SEC’s potential approval of ETFs is a move to pave the way for traditional financial institutions to take over the space.
After weeks of pessimism and a massive regulatory crackdown, the crypto industry is finally getting some good news. If approved, BlackRock’s spot Bitcoin ETF application could be a game-changer.
The crypto community’s reaction to BlackRock’s Bitcoin spot ETF filing has been generally positive, but some remain skeptical.
BlackRock ETFs are a game changer
On June 15, foreign media reported that BlackRock, the world's largest asset management company, is preparing to submit an application for a spot Bitcoin ETF.
Additionally, the company will work with Coinbase to provide ETF custody services, namely the spot market data that exchanges use for pricing.
As one of traditional finance’s biggest players prepares to enter the crypto space, Crypto Twitter is abuzz with commentary and approval of the news.
Industry researcher Luke Martin said the SEC’s incompetence opened the door for Asian countries to establish themselves as cryptocurrency hubs.
“The regulatory crackdown in the U.S. didn’t stop cryptocurrencies, it just meant other countries took advantage.”
BlackRock CEO Larry Fink alluded to this in a recent industry review. The asset manager is also planning to tokenize other asset classes, stocks and bonds, and touch upon the benefits of decentralized rails.
Martin commented that this was “refreshing when the timeline is already full-blown crypto doom.”
Adam Cochran, partner at Cinneamhain Ventures, added, "BlackRock is like the king of ETFs. They don't submit something they don't expect to win."
However, Will Clemente, founder of Reflexivity Research, sees a more sinister side to potential ETF approvals.
“If Blackrock’s spot ETF application is approved, it will be undeniable that Operation Chokepoint 2.0 was orchestrated to drive out crypto-native companies and bring in large traditional companies with close ties to the US government in an attempt to control Bitcoin/cryptocurrency.”
Cryptocurrency analyst Miles Deutscher echoed the sentiment, commenting: “The SEC is ‘killing’ crypto so they can control it.”
They are cutting off fiat on/off ramps and muddying the regulatory waters to prevent startups from entering the space. Additionally, they are refusing to issue licenses to crypto businesses while suing them for failing to register security exchanges they do not operate.
This, he said, “paves the way for TradFi institutions to take over the space by granting appropriate approvals”.
Crypto market reaction is muted
Crypto markets showed limited reaction to the BlackRock ETF news. Total market capitalization rose just 1% on the day to $1.07 trillion.