BlackRock’s recent filing for a spot bitcoin exchange-traded fund (ETF) is being hailed as a pivotal moment in Bitcoin’s journey towards institutional acceptance. Ark Invest, renowned for its innovative investment strategies, sees this move by the world’s largest asset manager as a significant turning point.
According to a note from Ark analyst Yassine Elmandjra, BlackRock’s decision to pursue a Bitcoin ETF indicates a positive long-term outlook for the digital asset among large institutional players. The filing, submitted on June 15, has set in motion a series of similar actions by other asset managers such as Invesco, WisdomTree, and Valkyrie, who are also looking to launch their own spot bitcoin funds.
While the filing may resemble previous ETF applications, BlackRock has collaborated with Nasdaq to create a unique surveillance-sharing agreement. This agreement aims to mitigate the risk of market manipulation related to bitcoin. Elmandjra pointed out that other applicants can easily amend their filings with similar agreements at minimal cost.
Since the news of BlackRock’s filing, the price of Bitcoin has experienced a significant surge, with a 16% increase over the past week. As of now, Bitcoin is trading at $30,434, according to Coinmarketcap.
CoinShares, a leading digital asset investment firm, reported substantial inflows into crypto investment products, amounting to $199 million last week. Notably, Bitcoin emerged as the primary beneficiary, attracting $188 million in inflows.
In a separate development, Cathie Wood, the CEO of Ark Invest, displayed her confidence in the cryptocurrency industry by acquiring over $20 million worth of Coinbase shares amidst a plunge in the stock’s value following charges brought against it by the U.S. Securities and Exchange Commission (SEC). Wood’s continued support of innovative technologies and her willingness to invest during periods of market volatility have solidified her reputation as a champion of fresh ideas.
One thing to note is Coinbase has been designated as the Bitcoin custodian for the forthcoming BlackRock ETF
The confluence of events, including BlackRock’s filing and the bullish market sentiment, has ignited optimism within the crypto community. The potential approval of a Bitcoin ETF and increased institutional participation could bring further legitimacy and stability to the cryptocurrency market, potentially attracting more investors and accelerating its mainstream adoption.