Is BlackRock’s Bitcoin ETF the Best Thing for BTC?

BlackRock’s Bitcoin ETF Filing Boosts Investor Trust

Some crypto industry observers believe that BlackRock’s most recent filing for a Bitcoin (BTC) trust will boost investor trust in Bitcoin and could even be “the best thing that could occur” for BTC, however others caution of a potential hidden cost.

In an interview on June 16, Mike Novogratz, CEO of Galaxy Digital, stated that the approval of BlackRock’s ETF application would be “the best thing that could happen to Bitcoin.”

Novogratz is reported to have stated during a Fox News segment that he recites a Hail Mary prayer each night in the hope that Larry Fink and Blackrock will be successful in launching a Bitcoin ETF.

James Edwards, a cryptocurrency analyst from Finder.com, a financial product comparison website, informed Cointelegraph that the timing of BlackRock’s filing should give “confidence” in both Bitcoin and Coinbase as it confronts the SEC in its upcoming legal battle.

“BlackRock’s determination to move forward with a Bitcoin ETF despite the SEC’s hostile stance towards cryptocurrency is indicative of their trust in Bitcoin’s standing as a commodity instead of a security,” he commented, continuing.

BlackRock’s decision to employ Coinbase Custody for managing funds is a significant show of trust for Coinbase as it readies itself for legal action, according to Edwards.

He stated that BlackRock, the biggest asset manager in the world, probably wouldn’t have joined forces with Coinbase if they hadn’t been assured of Coinbase’s legal standing.

Potential Hidden Cost of BlackRock’s ETF

Some contend that the recent actions of the long-standing investment powerhouse contradict the “spirit” of decentralized digital currencies, or, that the firm may discover a method to gain from retail investors.

In a June 16 interview, investor Scott Melker stated that granting approval for the crypto industry would be detrimental to the crypto-native innovators who created it.

Adam Cochran, a partner at Cinneamhain Ventures and a strong supporter of Ethereum, agrees with Melker’s opinion that BlackRock will take advantage of the discounted coins of retail investors.

Steven Lubka, a managing director at Swan Bitcoin, has a similar outlook, forecasting that BTC will hit $1 million, yet most retail investors will not benefit from it since a majority of BTC will be held by BlackRock, Goldman Sachs, and other ETF providers.

Melker asserted that Wall Street companies will persist in entering the domain and that American regulators are likely to “prefer” them to established platforms.

Beginner’s Guide to Exchange-Traded Funds Related to Bitcoin

A beginner’s guide to exchange-traded funds related to Bitcoin:

Other investment firms such as ARK Invest, Grayscale, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge and WisdomTree have all submitted applications to the SEC for Bitcoin and cryptocurrency ETFs.

Since the story was first announced, the cost of BTC has gone up 2.2% to $25,584 as of this writing.

The Fear & Greed Crypto Index moved from 41 to 47 – taking it out of the fear zone – after the news of BlackRock’s filing was announced, interestingly.

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