The BlackRock bitcoin-based exchange-traded fund (ETF) application is the big topic in the crypto industry as of late. Everyone’s talking about it, including Austin Arold of Altcoin Daily. In a recent video, he went so far as to say he’ll be very surprised if the application isn’t approved, and he thinks BlackRock is paving the way for all sorts of change in the crypto sphere.
The BlackRock ETF Could Easily Get a Greenlight
BlackRock is the ultimate business when it comes to standard finance. That’s why everyone was so shocked when it announced it was going to submit a bitcoin ETF application. No such document has ever been approved by the SEC in the past, though to be fair, BlackRock has a relatively solid reputation and standing with the agency, as it’s already had more than 500 previous applications receive the greenlight.
Arnold doesn’t think anything will change this time around. He says the firm is likely to receive a “yes” on its new bitcoin ETF. He commented:
This legitimizes the space hugely. There’s been many, many, many bitcoin ETFs filed in the last three, five years that have not gotten approved. Now, BlackRock is much bigger, BlackRock is much more respected. I would be very surprised if BlackRock would do this and not get approved, because in all of BlackRock’s history, they have only been denied once, they have been approved every other time… BlackRock has a history of making these relationships and only requesting approval when they’re pretty sure they’re getting approved.
What’s particularly important about this present application is that it’s for what’s called a “spot” ETF, meaning BlackRock would hold the bitcoin that’s being traded. This, analysts assume, would have a serious impact on the BTC price, and they believe the world’s number one digital currency could reach a new high. Arnold said:
This is a spot ETF, different from a futures ETF. A futures ETF, you don’t have to hold the asset… With a spot ETF, you [need] to back what you’re allowing people to trade, so they [need] to have custody of that bitcoin… This is huge for price, this is a way that institutions can buy in with just the ticker and… when they’re buying into that ticker, that bitcoin [needs] to be accounted for.
Is the SEC Having a Change of Heart?
BlackRock is one of many companies awaiting a response regarding its bitcoin ETF application, though it appears that through these companies, the SEC is allegedly warming up to crypto in ways it never has before. Arnold said:
The real reason BlackRock has applied for a spot bitcoin ETF is they want to make money. They see huge demand; clients are asking for it. If it’s not them, it’s going to be somebody, and they want an asset in heavy demand under their control.
