The biggest asset manager in the world might be trying to succeed where all others have failed.
According to an unnamed source, BlackRock, the largest asset management in the world, intends to submit an application for a Bitcoin ETF. This action suggests that BlackRock might eventually enter the cryptocurrency sector.
According to reports, the asset management is thinking about using Coinbase Custody to safeguard digital assets and use pricing information from Coinbase’s spot market. Through this alliance, BlackRock might have access to a dependable infrastructure and data source for its Bitcoin ETF.
In a recent lawsuit, the Securities Exchange Commission (SEC) accused Coinbase of operating as an unregistered exchange among other alleged securities law violations. It is yet unclear how this legal action may affect BlackRock’s ETF application.
The SEC has so far rejected every application for a spot Bitcoin ETF, making the adoption of a Bitcoin ETF a divisive issue in the US. The regulatory body has, however, demonstrated openness to Bitcoin futures ETFs, indicating some level of approval for financial products based on cryptocurrencies.
Main reasons for the SEC’s reluctance to approve spot Bitcoin ETFs include worries about market manipulation and the absence of regulatory oversight on many cryptocurrency exchanges. To obtain regulatory clearance for any possible Bitcoin ETF, these problems must be resolved.
BlackRock’s participation in the cryptocurrency industry would be highly important given that it now manages over $9 trillion in assets. Its debut into the Bitcoin ETF market might have a significant effect on investor sentiment and market dynamics.
The trend shows how institutional actors are becoming more interested in cryptocurrencies and how greater mainstream adoption may occur as large financial organizations look into prospects in the digital asset market.