BlackRock (BLK.N) is putting all the meat on the grill in its commitment to cryptocurrencies. The world’s largest asset manager is seeking to launch the first spot bitcoin exchange-traded fund (ETF) in the United States.
On Thursday, the New York City-based company requested permission for the iShares Bitcoin Trust, according to an application filed with the US Securities and Exchange Commission (SEC), despite the fact that this asset class is under intense regulatory scrutiny. That, without counting the legal scrutiny of startups and consortiums that turned out to be a speculative and fraudulent business model for their clients (cof, cof, FTX, cof).
According to Reuters, Coinbase would be the trustee of the fund’s bitcoin usufructs. While Bank of New York Mellon would guard those of fiat currency. In this way, with a traditional model, the seriousness of the fund and its investments is guaranteed.
If approved, the Black Rock ETF would be listed on the Nasdaq and would trade as commodity-based fiat stocks.
BlackRock’s request comes at a complex time, as Coinbase, considered the largest cryptocurrency platform in the United States, has recently been sued by the SEC for operating without a traditional broker license.
Why is BlackRock’s bet relevant for a private investment fund?
- BlackRock’s proposed ETF takes proprietary price data from cryptocurrency exchanges that are held to the highest standards of market integrity and transparency. This frame of reference provides a background to assess the performance of startups that bet on Crypto in their value proposition.
- It would protect investors, since the price of the products compared would be followed by the cash of the underlying asset. It is an excellent alternative to place capital and ensure returns backed by nothing less than BlackRock.
- The credibility of the cryptocurrency had suffered from recent scandals, regulatory news, and some unfortunate statements from senior managers. So this would bet the development of private investment funds in the cryptocurrency market and accelerate them.
Why is this BlackRock bet relevant to startups?
- Bitcoin is consolidated as the axis of a value proposition based on cryptocurrencies. It would reduce the risks of capital loss, since asset movements could be monitored in real time.
- ETFs are recognized for their liquidity, this means that they can be bought and sold at any time.
- ETFs standardize prices, this helps to reduce extremely volatile costs and uneven increases. This factor gives investors greater certainty and is a good argument to support your commitment to cryptocurrencies.
To read the information in detail, visit: Reuters