Leveraging the BlackRock & Coinbase Partnership for Profitable Crypto Investments!
The key to achieving substantial returns in cryptocurrency often hinges on early investment in the correct coins. Occasionally, this sector offers investors a second or even third opportunity to enter near the base level. It can indeed be devastating when an investor witnesses their chosen coin depreciate by 90% or more. However, for those who were not part of the initial rise, this could present a significant opportunity to join in anticipation of the next ascent.
Undoubtedly, numerous factors will influence whether a coin will attain new all-time highs in the subsequent cycle. Yet, we can enhance our chances of success by carefully selecting the projects we invest in and projecting future narratives that bear the potential for significant growth. In a subsequent article, I will discuss potential narratives I anticipate will attract substantial capital.
In this instance, however, I would like to draw attention to a development that could have considerable implications. It pertains to Brian Armstrong, Coinbase and BlackRock.
In a recent episode of ‘Crypto Banter’ on YouTube, Ran Neuner proposed a less risky cryptocurrency strategy — investing in Coinbase’s stock now. Despite Coinbase’s stock having depreciated by more than 85% from its all-time high of $368.90, that is not the strategy I am advocating in this article. With Coinbase’s stock currently trading at $46.93, Neuner’s suggestion might indeed be a sound strategy for individuals seeking exposure to cryptocurrency with somewhat reduced risk.
Nonetheless, the proposal of a Bitcoin ETF by BlackRock and Coinbase could fundamentally alter the dynamics of the crypto world if approved. I will elaborate on my thoughts and specific strategy shortly. However, it is essential to first understand the developments that could potentially catapult Coinbase’s stock and and more importantly have positive implications for other crypto projects in the market.
The Players
BlackRock is the world’s largest asset manager, with over $10 trillion in assets under management. That’s more than the GDP of every country in the world except for the United States and China. BlackRock is a holding company that provides investment management services to institutional investors, such as pension funds, insurance companies, and sovereign wealth funds.
BlackRock is so powerful because of its size and reach. It has a presence in over 100 countries and manages assets for clients all over the world. BlackRock also has a strong track record of performance, which has attracted even more clients to its services.
BlackRock’s size and reach give it a lot of influence over the global economy. For example, BlackRock can vote on the boards of companies that it invests in, which gives it a say in how those companies are run. BlackRock can also use its influence to pressure governments to adopt policies that are favorable to its clients.
Some people have concerns about BlackRock’s power. They worry that BlackRock is too big and too powerful, and that it could use its influence to manipulate the markets or to benefit its own interests at the expense of others. However, BlackRock’s defenders argue that the company’s size and reach are actually a good thing. They say that BlackRock’s size gives it the resources to invest in long-term projects, such as infrastructure and renewable energy, which can help to promote economic growth. Yet what we are interested here is the financial onramp into crypto, which they potentially bring. It’s huge.
Coinbase is a cryptocurrency exchange that allows people to buy, sell, and trade cryptocurrencies. It is one of the most popular cryptocurrency exchanges in the world, with over 89 million users. Coinbase has been involved with BlackRock since August 2022, when the two companies announced a partnership that would allow institutional investors to access Bitcoin through Coinbase Prime, Coinbase’s institutional trading and custody platform. This partnership is seen as a sign that BlackRock is becoming more bullish on cryptocurrencies, and it could lead to increased demand for Bitcoin and other cryptocurrencies from institutional investors.
The Recent News
BlackRock, the world’s largest asset manager, recently filed an application with the U.S. Securities and Exchange Commission (SEC) to create a Bitcoin exchange-traded fund (ETF). This is significant because it would be the first spot Bitcoin ETF to be approved by the SEC.
Spot ETFs are different from futures ETFs, which have been approved by the SEC. Futures ETFs track the price of Bitcoin futures contracts, which are contracts that allow investors to buy or sell Bitcoin at a predetermined price in the future. Spot ETFs, on the other hand, would track the price of Bitcoin itself.
The approval of a spot Bitcoin ETF would be a major step forward for the cryptocurrency industry. It would make it easier for institutional investors to invest in Bitcoin, which could lead to increased demand for the cryptocurrency. This could also help to legitimize Bitcoin and make it more mainstream.
Coinbase, would likely benefit from the approval of a spot Bitcoin ETF because of their partnership with BlackRock. Coinbase is already a popular platform for retail investors, but an approved ETF could help the company to attract more institutional investors. Institutional investors typically have more money to invest, so they could generate a lot of trading volume for Coinbase.
Of course, there is no guarantee that the SEC will approve BlackRock’s application. The SEC has been hesitant to approve Bitcoin ETFs in the past, citing concerns about market manipulation and investor protection. However, the recent surge in interest in Bitcoin could make the SEC more open to approving an ETF.
However, the SEC has only denied one ETF application from BlackRock, and that was back in 2014. The SEC was concerned about the potential for market manipulation and investor protection, so they denied the application.
BlackRock has had an excellent record with the SEC when it comes to ETF approvals. They’ve had 575 applications approved, and only one denied. That gives them a success rate of 99.8%.
Just because the SEC denied one of BlackRock’s applications in the past doesn’t mean they’ll deny future applications. The SEC’s decision-making process for ETF approvals is complex and can vary depending on the specific circumstances of each application but one can be certain that BlackRock will exert the full force of their influence to get this one passed.
We will have to wait and see what the SEC decides. But if the SEC does approve BlackRock’s application, it would be a major milestone for the cryptocurrency industry. Therfore, as you can see, Coinbase’s partnership with BlackRock could propel them past the current regulatory FUD, into a very prosperous position.
Where does it all lead?
If the BlackRock Bitcoin ETF is approved, Coinbase stock will likely see a significant increase in value. This is because BlackRock is one of the largest asset managers in the world, and their support for a Bitcoin ETF would give the asset a major stamp of approval. Additionally, Coinbase is the largest crypto exchange in the United States, and they would be the natural custodian for the ETF. This would give them a huge boost in volume, which would likely lead to a rise in their stock price.
Here is my thesis that I want to focus on… It is also possible that other cryptos on the Coinbase platform could see a rise in value. This is because the ETF would make it easier for investors to buy and sell Bitcoin, which could lead to increased demand for other cryptos specifically on the Coinbase platform.
Consder this… Coinbase is one of the biggest cryptocurrency exchanges in the world. But how does it decide which cryptocurrencies to list on its platform? Brian Armstrong, the CEO of Coinbase, has said that the company’s process for picking cryptocurrencies to list is “very rigorous” and that it takes into account a number of factors that I won’t detail here.
According to a CNBC report, Brian Armstrong, the CEO of Coinbase, has met with the SEC over 30 times since March 2022. The meetings were reportedly aimed at discussing the regulatory status of cryptocurrencies and Coinbase’s plans to list new tokens. Therefore, it is reasonable to believe that Coinbase has been listing coins with U.S. regulatory scrutiny in view for some time.
Just think about this — as of June 2023, Coinbase has handpicked only about 250 cryptocurrencies for its platform. That’s just a small slice of the pie when you consider all the coins that are out there. But, you know what? It’s this exclusivity, this pickiness, that makes Coinbase such a reliable hub for crypto trading and that was surely underscored repeatedly to the SEC!
Now, let’s chat about the potential ripple effect if BlackRock’s ETF gets the green light. The seal of approval could mean a significant influx of investment pouring into Coinbase and subsequently the 250 cryptocurrencies listed there would have the financial advantage over those that aren’t listed on Coinbase.
So, here’s the idea. What if you could be ahead of the game, be the early bird? What if you start delving into these 250 cryptos listed on Coinbase, pinpoint the ones most likely to skyrocket, and make your move before the crowd catches on?
The moment’s here, my fellow crypto trekkers! Cryptos like Dot, Near, and Avalanche could be the trendsetters, our winning investments for this decade! Can you imagine if you had snagged Bitcoin at $100 or Ethereum at $30? We might be on the brink of such opportunities again with the right projects! Most altcoins are down at least 70%… we are once again we are early!
And you know what? I’m on it. I’m rolling up my sleeves and diving deep into these 250 cryptos. I’ll be spotlighting the ones that, in my view, have the potential to gain big. And guess what? I’ve already got one that is listed on Coinbase in mind. Want to find out which one it is? Just follow this link and read all about it! https://medium.com/coinmonks/the-unstoppable-blockchain-why-investors-cant-ignore-this-crypto-powerhouse-neither-should-ac4702b67d71
You can dollar-cost average into the best cryptos on Kucoin (my favorite exchange)! Here is the link:
https://www.kucoin.com/r/af/2KsRxuN
My blah blah blah disclaimer: I am not a financial advisor and cannot provide investment advice. Cryptocurrencies and investing in general involve risk, and individuals should conduct their own research and consider their personal financial situation before making any investment decisions.
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