BlackRock’s recent introduction of instant Bitcoin (BTC) will boost investor confidence in Bitcoin and may be “the best thing that can happen” to BTC, according to some crypto industry watchers — but others warn of a hidden cost.
During an interview on June 16, Galaxy Digital CEO Mike Novogratz He said Approval of BlackRock’s ETF would be “the best thing that could happen to $BTC.”
“Hi Mary every night Larry Fink and blackrock are pulling a bitcoin ETF,” Novogratz reportedly said in the Fox News clip.
fun being @tweet Displays!! and yes, @Black stone Getting BTC dollars An ETF would be the best thing that could happen BTC dollars. https://t.co/2fFBeB9eyo
– Mike Novogratz (@novogratz) June 16, 2023
Meanwhile, cryptocurrency analyst James Edwards of Finder.com — a financial product comparison website — told Cointelegraph that the timing of BlackRock’s filing should provide “confidence” in both Bitcoin as an asset and also Coinbase in its upcoming legal battle with the SEC:
“BlackRock’s willingness to lobby for a Bitcoin ETF at a time when the SEC is at war against cryptocurrencies is crucial. It shows confidence in Bitcoin’s status as a commodity — not a financial one,” he added:
“BlackRock is unlikely to move forward with an ETF of this type without serious consultation with regulators and confidence in the future legal status of Bitcoin.”
Edwards made it clear that BlackRock’s intent to use Coinbase Custody to control funds should also be seen as a great booster of confidence in Coinbase while preparing its legal defense.
He added that BlackRock – the world’s largest asset manager – would likely not partner with Coinbase had it not been “confident” about Coinbase’s legal status.
the negative side
Others argue that the traditional investment giant’s recent moves are undermining the “spirit” of decentralized cryptocurrencies, or that the company may find a way to profit from retail investors.
Investor Scott Melker to explain on June 16th interview That such approval would be a disservice to the original innovators who built the industry:
“As good as this may be for the institutional adoption of space, it kind of violates the spirit, it’s kind of a dishonest push away from the people who built the industry in the United States.”
Cinneamhain Ventures partner and Ethereum bull Adam Cochran Believes That BlackRock will pounce on retail investors’ “discount coins,” a theory Melker also shares.
Black Rock Box… https://t.co/3g77QNdAun
– wolf of all streets (scottmelker) June 15, 2023
Stephen Lubka, managing director at Swan Bitcoin, shared a similar view, anticipation BTC will reach $1 million, but few retail investors will reap the rewards because the bulk of BTC will be owned by BlackRock, Goldman Sachs, and other ETF issuers.
milker added That Wall Street firms will continue to move into space and that US regulators are likely to “choose” them over existing platforms.
Related: Bitcoin ETFs: A Beginner’s Guide to Exchange Traded Funds
ARK Invest, Grayscale, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree are among the other investment firms that have applied to the SEC for similar bitcoin and cryptocurrency ETFs.
Since the news was first reported, BTC price is up 2.2% to $25,584 at the time of writing.
Interestingly, the Fear & Greed Crypto Index more 41 to 47 – Leaving the Fear Zone – following the news of the BlackRock filing.
magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Word?
