Is BlackRock’s Bitcoin ETF good for BTC or not?
BlackRock has filed for a Bitcoin (BTC) trust, which some experts believe will increase investors’ confidence in Bitcoin and could even be the best thing that could happen to BTC. However, others warn that there may be a hidden cost.
Galaxy Digital CEO, Mike Novogratz, said during an interview that the approval of BlackRock’s ETF application would be the best thing that could happen to BTC. Meanwhile, cryptocurrency analyst James Edwards of Finder.com said that BlackRock’s filing should provide confidence in both Bitcoin as an asset and Coinbase in its upcoming legal battle with the SEC. BlackRock’s intention to use Coinbase Custody to control funds should also be seen as a massive confidence booster for Coinbase as it prepares its legal defense, Edwards explained.
However, others argue that BlackRock’s latest moves undermine the “ethos” of decentralized cryptocurrencies, or that the company may find a way to profit from retail investors. Investor Scott Melker believes that such an approval would be a disservice to crypto-native innovators who built the industry, while Cinneamhain Ventures partner and Ethereum bull Adam Cochran believes that BlackRock will swoop in on the “discounted coins” of retail investors. Steven Lubka, a managing director at Swan Bitcoin, shared a similar view, predicting that BTC will reach $1 million, but few retail investors would reap the rewards because the bulk of BTC will be owned by BlackRock, Goldman Sachs and other ETF issuers.
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, the price of BTC has increased 2.2% to $25,584 at the time of writing. Interestingly, the Fear & Greed Crypto Index increased from 41 to 47 following the news of BlackRock’s filing.