The Bitcoin (BTC) space is buzzing.
BlackRock, the biggest asset manager in the world, just made a move that sent shockwaves through the crypto market.
BlackRock is a heavyweight in the investment world. It manages a total of $9.1 trillion and has a global presence. In fact, BlackRock spans every region, industry, and type of asset out there… from stocks and bonds to real estate and commodities.
And a few days ago, BlackRock filed to launch its own Bitcoin exchange-traded fund (ETF).
This is a huge step for Bitcoin. If the ETF is approved, it would allow retail investors to buy Bitcoin as shares of an ETF from an ordinary brokerage account.
This would add a level of legitimacy and accessibility that the digital asset doesn’t currently have. It would also be a massive vote of confidence in Bitcoin from the world’s largest asset manager.
So today and tomorrow, I want to pull back the curtain on this important development and show you what it means for Bitcoin. I’ll also reveal how you can take advantage of the news for your own benefit…
Watch What They Do, Not What They Say
BlackRock’s CEO, Larry Fink, has been openly skeptical about Bitcoin before…
So this development represents a 180-degree shift of sentiment from the company.
For instance, Fink infamously called Bitcoin an “index of money laundering” in 2017.
Source: CNBC
In that sense, Fink is similar to JPMorgan CEO Jamie Dimon. He called cryptocurrencies a fraud while his company was developing its own digital coin for payments – JPM Coin – and betting on the metaverse.
As the saying goes: look at what they do, rather than what they say.
Now, many Bitcoin enthusiasts aren’t thrilled that BlackRock has warmed up to Bitcoin. They already think BlackRock rules the world, and they’re not fans of the company to begin with.
But whether you love or hate it, BlackRock knows how to run a business. They see where the future of money is headed, and they want a piece of the action. This is good news for at least those already owning Bitcoin.
The ETF would make it a breeze for people to invest in Bitcoin through regular stock trading platforms, not just crypto exchanges. This could get more people into Bitcoin and push its price up.
But there’s more to the story…
iShares Bitcoin Trust
The BlackRock product, known as the “iShares Bitcoin Trust” in SEC filing documents, proposes to hold physical Bitcoin. According to the application, cryptocurrency exchange platform Coinbase would act as the custodian for the trust’s underlying Bitcoin.
The filing says:
The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin rather than by acquiring, holding and trading bitcoin directly on a peer-to-peer or other basis or via a digital asset exchange.
Here’s what this means in simpler terms…
The ETF would closely follow the price of Bitcoin. It would also simplify the process and remove the challenges of investing in Bitcoin directly. Most importantly, it would all be backed by actual Bitcoin held by the Bitcoin Custodian on behalf of the Trust.
Now, it’s worth noting that such Bitcoin ETFs already exist. There are several currently trading in Canada, like the Purpose Bitcoin ETF, which is the largest of the bunch.
But you won’t find those Bitcoin ETFs in the United States. And it’s not because people haven’t been trying…
Over the years, we have seen 30 attempts by different companies to launch Bitcoin ETFs. But none of them succeeded. VanEck, Invesco, Valkyrie, ARK, you name it, have all been rejected by the SEC.
The reason is that the SEC has always been wary of the unregulated crypto space, fearing potential fraud and market manipulation.
While there have been occasional incidents like hacks and scams, the existing Bitcoin ETFs haven’t faced any major issues. The SEC doesn’t seem to take that into account, though.
The SEC has previously approved Bitcoin Futures ETFs. These don’t invest in the actual price of Bitcoin, but rather in Bitcoin futures contracts. The contracts are held on the Chicago Mercantile Exchange (CME).
But getting approval for a Bitcoin spot ETF, which invests directly in actual Bitcoin, would be a much bigger deal.
Here’s why…
It would allow retail investors to buy Bitcoin as shares of an ETF from an ordinary brokerage account. It would also make it easier for institutional investors to hold BTC.
Meaning, big players like pension funds would be able to get into Bitcoin in a simpler way. This would take its adoption to a whole new level.
That’s why when the news broke about BlackRock’s filing, the market went wild.
Bitcoin has gained nearly 25% in value, soaring as high as $31,458 last Friday. That’s the highest level since June 7, 2022.
Although the market went up on the news, the road to approval is still a long way off.
That’s because the SEC has shot down every previous attempt to launch the same type of fund.
Tomorrow, I’ll go into the possibility of BlackRock’s ETF getting approval… why the company has an advantage over previous attempts… and how you can take advantage of this development.
Stay tuned for more.
Regards,
 |
Nomi Prins
Editor, Inside Wall Street with Nomi Prins
P.S. While BlackRock prepares to launch its new ETF, a development that would legitimize Bitcoin on a larger scale…
The Fed and financial elites are gearing up to enact a transformation of our money.
It would change the way we transact with our financial system – and the way our financial system transacts with us.
In fact, it would mark the end of the dollar as we know it.
That’s why I held an emergency briefing called Countdown to Chaos last Wednesday, where I explained what the Fed exactly has in store for our financial future.
I also revealed one little-known way you can position yourself to profit from the uncertainty that’s coming. It has the potential to deliver as much as 50x profits.
If you missed it, make sure you watch the replay by clicking here. But do it quickly, before my publisher takes it down.