BlackRock Unveils Novel Method for SEC Approval of Bitcoin ETF

The recent spot Bitcoin (BTC) trust filing by BlackRock has stirred mixed responses in the cryptocurrency sector. While some see this as a significant boost for Bitcoin, others express concern about potential downsides.

Galaxy Digital’s CEO, Mike Novogratz, voiced his support during a Fox News interview on June 16, declaring that approval of BlackRock’s ETF application would greatly benefit Bitcoin. Novogratz expressed his hope for Larry Fink and BlackRock to successfully launch a Bitcoin ETF.

Concurrently, cryptocurrency analyst James Edwards from Finder.com suggests that BlackRock’s timing is a positive signal for both Bitcoin and Coinbase, particularly in light of their looming legal dispute with the SEC. Edwards sees this move as evidence of BlackRock’s faith in Bitcoin as a commodity, and a strong endorsement for Coinbase’s legal stance.

However, some warn of a downside to this development. Investor Scott Melker argues that approval of BlackRock’s move could disadvantage those pioneers who have worked tirelessly to build the crypto industry. Others, like Adam Cochran of Cinneamhain Ventures and Steven Lubka of Swan Bitcoin, fear that firms like BlackRock could dominate the Bitcoin market, potentially benefiting at the expense of retail investors.

Despite the differing viewpoints, it’s noteworthy that other investment companies such as ARK Invest, Grayscale, Fidelity, and WisdomTree have submitted similar Bitcoin and crypto ETF applications to the SEC.

The announcement of BlackRock’s filing seems to have had a positive effect on Bitcoin’s price, with a 2.2% increase reported, and the Fear & Greed Crypto Index rising from 41 to 47, indicating an exit from the ‘fear zone’.