Hello everyone, I am Brother Nine.It is reported that the Bitcoin spot ETF applied by BlackRock recently is expected to pass
Hello everyone, I am Brother Nine.
It is reported that the Bitcoin spot ETF applied by BlackRock recently is expected to pass. Once this news was released, global finance was shocked.
So, some brothers need to ask, what is an ETF and why is applying for a Bitcoin spot ETF so popular? Nine brothers, let's talk about this matter today.
First of all, ETF (Exchange Traded Funds, referred to as "ETF") is a Open-end fund that is listed and traded on the exchange and has variable fund shares. It is a special kind of Index fund.
Supporters of Bitcoin ETF believe that the complexity of exchanges, crypto wallets and private keys still poses a huge obstacle for newcomers to enter the field of encryption. Bitcoin ETF will enable ordinary users to obtain investment in Bitcoin without actually holding their own Cryptocurrency.
Strictly speaking, Bitcoin ETFs are divided into two types: Bitcoin Spot ETFs and Bitcoin Futures ETFs. Bitcoin spot ETFs track the market price of BTC in real-time, while Bitcoin futures ETFs track the price of Bitcoin futures contracts.
However, according to the definition of the SEC official website, only the Bitcoin futures ETF conforms to the Standardization agreement and is used to buy and sell a specific amount of Bitcoin at a specified price on a specific date in the future. So, currently, all six Bitcoin ETFs approved by the SEC are futures ETFs
But Bitcoin futures ETFs do not directly invest in Bitcoin,Therefore, the industry has always been eager for Bitcoin in stockETFThe launch of.However, the reality is very desperate. In the past few years, the SEC has rejected all applications for spot ETF of Bitcoin, including ArkInvest, BlackRock, Fidelity, Gray and other institutions.
There are three main reasons for rejection: 1. These applications cannot prove that these ETFs are "designed to prevent fraud and manipulation behavior"; 2. These applications cannot prove that these ETFs are "designed to protect investors and the public interest"; 3. The issuer filing of these applications is insufficient and lacks necessary information.
Until recently, this matter had a turning point. On June 15, BlackRock, the world's largest asset management company (with more than 9 trillion dollars of assets under management by the first quarter of 2023), once again submitted an application to the U.S. Securities and Exchange Commission (SEC) to create a spot ETF for Bitcoin through its iShares subsidiary. This document proposes Coinbase as the custodian of Cryptocurrency and Spot market data provider, and BNY Mellon as the cash custodian.
Eric Balchunas, a senior ETF analyst at Bloomberg, said that BlackRock had repeatedly argued with the U.S. Securities and Exchange Commission (SEC) about the launch of ETFs, but the proportion of its successful approval was 575:1. Bitcoin spot ETFs are expected to pass, immediately sparking market discussions and sparking a new round of application competition among institutions.
According to the schedule of 21SharesBitcoin ETF, perhaps the first Bitcoin spot ETF will be born on August 11, and the SEC tends to be the first to pass the review of BlackRock's iShares.
At the same time, Larry Fink, CEO of BlackRock, in an interview with Fox Business recently, praised Bitcoin for "digitizing gold in many ways" and "being an international asset."
You should know that at the 2018 New York Times transaction manual meeting, Fink was also worried about the lack of support and supervision of crypto assets, saying that before BlackRock considered trading crypto assets or launching ETFs based on Cryptocurrency, the industry would take some time to mature and become "legal". In short, BlackRock will not consider trading Cryptocurrency unless it is "legal".
Fink's recent comments and BlackRock's re launching of BTC spot ETF application indicate that Cryptocurrency is increasingly accepted in the financial industry.
In short, Jiuge believes that if Bitcoin spot ETFs are successfully listed on the stock exchange, institutions and a large number of retail investors will have easy access to Bitcoin trading, which will mean that a large amount of funds will continue to flow into the cryptosphere, and holding BTCs is becoming increasingly sexy.
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