With asset management giant BlackRock filing for a Bitcoin ETF, the industry is abuzz with anticipation and speculation. Ravi Kumar of AlexaBlockchain engaged in a conversation with Konstantin Shulga, CEO and co-founder of Finery Markets, to gain valuable insights into this development. Shulga shed light on what this means for the industry and how BlackRock’s move could impact traders.
Shulga acknowledged the regulatory uncertainty surrounding the cryptocurrency market in the US but highlighted that institutions have continued to express interest in cryptocurrencies as an asset class.
He emphasized that BlackRock’s filing is a significant testament to the unwavering interest of the public in Bitcoin, indicating a belief in its potential as a legal and widely accepted instrument in the traditional financial industry.
If approved, BlackRock’s Bitcoin ETF would provide a convenient avenue for individuals and institutions to invest in Bitcoin without the complexities of maintaining crypto infrastructure for settlements and custody. However, Shulga posed the crucial question of whether BlackRock’s filing would face a different outcome than previous proposals that were rejected, such as those from Fidelity and Cboe Global Markets.
When asked about the possibility of other asset managers following suit, Shulga expressed that the industry has been eagerly awaiting a breakthrough that could foster greater adoption of digital assets.
He believes that if BlackRock’s filing receives approval from the SEC, it would send a positive message to the entire industry, potentially encouraging other asset managers to explore similar options. However, Shulga pointed out that obtaining SEC approval for a Bitcoin ETF, particularly one involving spot trading, has proven challenging in the past.
As the industry eagerly awaits the SEC’s decision on BlackRock’s filing, the fate of this proposal will undoubtedly shape the future landscape of cryptocurrency investment. The question of whether it will encounter a different outcome than previous rejections from other companies remains, leaving the industry in a state of anticipation and uncertainty.