BlackRock Bitcoin ETF and Retail Investors
Despite the fact that a sanctioned BlackRock Bitcoin (BTC) exchange-traded fund (ETF) will provide fresh institutional funds to Bitcoin, Michael Shaulov, the CEO and co-founder of institutional custody platform Fireblocks, believes that it is the retail investors who will be the ones to cause any significant price increases.
On June 15, the giant investment firm BlackRock submitted an application for a Bitcoin ETF, resulting in other financial institutions filing their own and Bitcoin’s price reaching its highest point in the past twelve months.
Although many anticipate that institutional involvement in crypto will lead to a surge in prices, Shaulov cautions that this may not be the case.
“When institutions enter the market in a discreet manner, they can do so without substantially impacting the price,” Shaulov stated to Cointelegraph during the Australian Blockchain Week.
Shaulov stated that in mid-2020, there were “massive inflows” of institutional money, yet prices did not significantly increase until retail investors began investing in crypto assets at a later point in the year.
He elucidated that 50% of the increases were from retail, as they are engaging in a manner that is less intricate and causes the price to fluctuate significantly.
Shaulov pointed out that the limited amount of Bitcoin should cause any large purchase of the cryptocurrency to have a noticeable effect.
Fireblocks CEO’s Opinion on Bitcoin
Shaulov, the founder of Fireblocks in 2018, opines that the story of Bitcoin is still unfolding for these organizations.
Shaulov stated that there are currently numerous stories related to Bitcoin: Is it a safeguard against inflation? Is it a public reserve currency? Is it a protection against governmental financial mismanagement?
Shaulov professed that, in his opinion, Bitcoin is the “ultimate insurance asset”.
Fireblocks VP states that once major companies realize the potential of crypto payments, they will not revert back to traditional methods.
“It possesses all the qualities necessary for when things take a turn for the worse. It’s an asset that is independent of the government, one that can be natively digital, and can be transferred easily.”
He stated that it does not matter what the value of the item is, whether it is worth $15,000, $20,000, or $60,000; what is important is to have enough of it to last through a certain period.
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