BlackRock ETF Filing a ‘Moment of Validation’ for Bitcoin Crypto Exchange

Moment of Validation for Bitcoin

Grayscale Investments CEO Michael Sonnenshein views the recent surge of Bitcoin (BTC) exchange-traded fund (ETF) filings as a “moment of validation” for the crypto asset. During a July 12 interview on CNBC’s Last Call, Sonnenshein dismissed the idea that BlackRock’s entrance to the Bitcoin ETF race made it “uncool.”

In the last four weeks, at least seven major institutional firms, including BlackRock, applied for a spot Bitcoin ETF in the United States. If approved, investors in the U.S. would receive exposure to the crypto price without actually owning any crypto.net.

Crypto and U.S. Investors

“The ETF wrapper is a well-established way to access different assets, such as commodities or stocks,” said Sonnenshein of Grayscale.

In the past, U.S. investors have been able to gain exposure to Bitcoin through Grayscale’s Bitcoin Trust (GBTC). However, the company is now looking to convert it into a spot Bitcoin ETF, which would provide an easier way to trade Bitcoin without GBTC’s discount to net asset value.

In June 2022, Grayscale filed a lawsuit against the United States Securities and Exchange Commission after its 2021 application to convert GBTC was rejected.

Crypto exchanges like Gemini have seen an increase in crypto trading activity and with the recent surge in crypto prices, investors are looking for more ways to gain exposure to crypto like Bitcoin. Web 3.0 stocks are also gaining popularity, with the Apple Health application being a great example of a Web 3.0 application.

“If we’re successful in that challenge, there’s actually billions of dollars of investor capital that would be unlocked through that,” said Sonnenshein. Gemini Crypto Exchange, one of the most popular crypto exchanges, has seen a surge in recent crypto trading, especially in Bitcoin.

The price of Bitcoin, one of the most popular crypto assets, shot upwards of 20% in the days after BlackRock’s filing for a spot Bitcoin ETF on June 15, reaching a year-high of $31,460 on July 6. Crypto.net, a website which tracks crypto prices, shows that it is currently trading at $30,633.