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- 1 BlackRock’s spot Bitcoin (BTC) ETF filing pumped BTC price by 22%.
- 2 With SEC’s approval, BTC ETF would provide indirect exposure without buying BTC.
With BlackRock, Valkyrie Investment, and WisdomTree filing for the Bitcoin ETF, BTC price rallied nearly 22%. Can this frenzy last? Can BTC rally? The United States Securities and Exchange Commission (SEC) is addressing multiple ETF requests. With BlackRock being the world’s biggest asset manager, their application indicates that the SEC might be ready to approve after years of denial.
Bitcoin ETF Mania – Current Scenario & Aftereffects
Grayscale has been trying to convert its Grayscale Bitcoin Trust into an ETF for a long time, and its request has been rejected multiple times. But considering BlackRock’s track record and market position, the SEC could give in. The market seems joyous regarding the current developments, but its long-term benefits are debatable.
BlackRock filed for a spot BTC ETF with the SEC under Coinbase’s custody; GBTC value plummeted with investors getting a better deal with the upcoming ETFs.
Bitcoin proponent Joe Carlasare, a commercial litigator, has his speculations regarding the ETF approval from the SEC. Some experts argue against the ETF structure. The assumptions surrounding the scenario raise concerns regarding the need for BTC ETFs in the first place.
Unchained’s co-founder and CEO, Joe Kelly, argues that directly buying BTC would be more beneficial instead of buying ETFs. Furthermore, he claims that the main feature of BTC is the elimination of intermediaries. With companies providing ETFs, a middle-man would be introduced in the cycle, contradicting the foundation.
Will the financial watchdog approve of this application, is the big question. But one thing that can be said for sure is that this filing indicates an increased interest in BTC exposure.
With Bitcoin halving supposedly in April 2024, it is seen that the halving correlates with the start of a bull market. Also, the current macroeconomic conditions are improving with the Fed’s interest rate hike. With the combination of ETF approval, halving, and Fed pivot would act like boosters for the BTC price to rally.
The traditional finance (TradFi) community is slowly entering cryptocurrency with multiple ETF requests. If approved, the line would blur for the investor wanting exposure to crypto, especially BTC.
The current market of Exchange Traded Funds in the United States, especially in the BTC market, is divided into three classes: grantor trusts, future-based ETFs, and BTC-adjacent equity funds. With Spot BTC-ETF, BlackRock would create a new style independent of others.
If the SEC approves all the requests, the options for investors would increase dramatically. As BTC has a max supply of only 21 Million, it can only cater directly to a limited number of investors. ETFs help circumvent this issue and provide exposure to almost everyone.
At press time, BTC is trading at $30,708.64, with a gain of 0.33% in the last 24 hours and 15.94% in the last seven days. Its value against Ethereum fell by 1.02% to 16.04 ETH. Market cap suffered by 0.33% to $596 Billion, and trading volume stumbled by 46.02% to $13.02 Billion. Ranking number 1, its market dominance is 49.81%.
As happened a few days earlier, BTC’s market dominance crossed 50%, meaning that its value was more than every cryptocurrency combined.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
