The crypto industry has finally got some good news following weeks of doom and gloom and a massive regulatory crackdown. The BlackRock spot Bitcoin ETF application could be a game changer if it gets approval.
The reaction from the crypto community to the BlackRock Bitcoin spot ETF filing has been generally positive, but some are still skeptical.
BlackRock ETF a Game Changer
On June 15, BeInCrypto reported that the world’s largest asset manager, BlackRock, is preparing to file a spot Bitcoin ETF application.
Furthermore, the firm will collaborate with Coinbase for ETF custody services, the exchange’s spot market data for pricing.
Crypto Twitter is awash with commentary and approval of the news as one of traditional finance’s biggest players prepares to enter the crypto space.
Industry researcher Luke Martin said that the SEC’s incompetence opens the door for Asian countries to establish themselves as crypto hubs.
“America’s regulatory crackdown doesn’t stop crypto. It just means other countries capture the upside.”
BlackRock CEO Larry Fink alluded to this in a recent commentary on the industry. The asset manager also has plans to tokenize other asset classes, stocks, and bonds and touches on the benefits of decentralized rails.
It is a “refreshing take when the timeline has been full-blown crypto doom,” remarked Martin.
Cinneamhain Ventures partner Adam Cochran added his take, commenting, “Blackrock is like the king of ETFs. They don’t file things they don’t expect to win.”
However, Reflexivity Research founder Will Clemente saw a more sinister side to potential ETF approval.
“If Blackrock’s spot ETF application gets approved, it is undeniable that Operation Chokepoint 2.0 was orchestrated to drive out crypto native companies and bring in large traditional firms that are buddy-buddy with the US govt to try and control Bitcoin/crypto.”
Crypto analyst Miles Deutscher shared 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’re denying licenses to crypto businesses while suing them for failing to register security exchanges that they’re not operating.
It is “paving the way for TradFi institutions to take over the space by granting them the appropriate approval,” he said.
Little Reaction From Crypto Markets
There has been a limited reaction from crypto markets to the BlackRock ETF news. Total capitalization is up just 1% on the day to reach $1.07 trillion.
Bitcoin prices made a minor 1.9% move to the upside to trade at $25,539 at the time of writing. The rest of the high-cap crypto assets were relatively flat on the day.
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