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BlackRock\u2019s latest filing for a spot Bitcoin (<\/a>BTC<\/a>) trust<\/a> will drive investors\u2019 confidence in Bitcoin and may even be \u201cthe best thing that could happen\u201d to BTC, according to some crypto industry observers \u2014 but others warn of a hidden cost.<\/p>\n During an interview on June 16, Galaxy Digital CEO Mike Novogratz said<\/a> the approval of BlackRock\u2019s ETF application would be \u201cthe best thing that could happen to $BTC.\u201d<\/p>\n \u201cI say a Hail Mary every night that Larry Fink and @blackrock pull off a @bitcoin ETF,” Novogratz said on the Fox News segment, according<\/a> to a tweet by host Liz Claman.<\/p>\n Fun being on @LizClaman<\/a> show!! And yes, @BlackRock<\/a> getting a $BTC<\/a> ETF through would be the best thing that could happen to $BTC<\/a>. https:\/\/t.co\/2fFBeB9eyo<\/a><\/p>\n \u2014 Mike Novogratz (@novogratz) June 16, 2023<\/a><\/p><\/blockquote>\n Meanwhile, cryptocurrency analyst James Edwards of Finder.com \u2014 a financial product comparison website \u2014 told Cointelegraph that the timing of BlackRock\u2019s filing should provide \u201cconfidence\u201d in both Bitcoin as an asset and also Coinbase in its upcoming legal battle fight with the SEC:<\/a><\/p>\n \u201cBlackRock\u2019s willingness to press on with a Bitcoin ETF at a time when the SEC is on a warpath against crypto is very telling. It shows confidence in Bitcoin\u2019s status as a commodity \u2014 rather than a security,\u201d he said, adding:<\/p>\n \u201cIt\u2019s unlikely that BlackRock would push forward with an ETF of this nature without serious consultation with regulators and confidence in Bitcoin’s future legal status.\u201d<\/p><\/blockquote>\n BlackRock\u2019s 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. <\/p>\n He added that BlackRock \u2014 the world\u2019s largest asset manager \u2014 likely wouldn\u2019t partner with Coinbase had they not been \u201cconfident\u201d in Coinbase\u2019s legal position.<\/p>\n Others argue that the traditional investment giant’s latest moves undermine the “ethos” of decentralized cryptocurrencies, or, that the company may find a way to profit from retail investors.<\/p>\n Investor Scott Melker explained<\/a> in a June 16 interview<\/a>\u00a0that such an approval would be a disservice to crypto-native innovators who built the industry:<\/p>\n \u201cAs good as this may be for institutional adoption of the space, it kind of violates the ethos, it is a bit of a dishonest push away from the people who built the industry in the United States.\u201d<\/p><\/blockquote>\n Cinneamhain Ventures partner and Ethereum bull Adam Cochran believes<\/a> that BlackRock will swoop in on the \u201cdiscounted coins\u201d of retail investors, a theory also shared by Melker.<\/p>\n Blackrock ETF\u2026 https:\/\/t.co\/3g77QNdAun<\/a><\/p>\n \u2014 The Wolf Of All Streets (@scottmelker) June 15, 2023<\/a><\/p><\/blockquote>\n Steven Lubka, a managing director at Swan Bitcoin, shared a similar view,\u00a0predicting<\/a>\u00a0that 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.<\/p>\n Melker added<\/a> that Wall Street firms will continue to move into the space and that U.S. regulators will likely \u201cchoose them\u201d over incumbent platforms.<\/p>\n Related: <\/strong>Bitcoin ETFs: A beginner’s guide to exchange-traded funds<\/strong><\/a><\/em><\/p>\n ARK Invest, Grayscale,<\/a> 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.<\/p>\n Since the news was first reported, the price of BTC has increased 2.2% to $25,584 at the time of writing. <\/p>\n Interestingly, the Fear & Greed Crypto Index increased<\/a> from 41 to 47 \u2014 leaving the fear zone \u2014 following the news of BlackRock\u2019s filing.<\/p>\n Magazine: <\/strong>Crypto regulation: Does SEC Chair Gary Gensler have the final say?<\/strong><\/a><\/em><\/p>\n<\/div>\n\n
The downside<\/h3>\n
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