BlackRock CEO Drastically Changes His View on Bitcoin

BlackRock ETF

BlackRock changes its mind and enters the world of cryptocurrencies

Five years ago, Larry Fink, the CEO of BlackRock, claimed that the fund’s clients were not interested in cryptocurrencies. However, in June 2023, BlackRock filed a registration application for a Bitcoin ETF on the spot market, indicating that the company has radically changed its stance.

The announcement was surprising for two reasons. First, the regulatory climate in the United States is not entirely favorable. Furthermore, the proposed fund is a Bitcoin ETF, a structure that the United States Securities and Exchange Commission has previously rejected.

Along with BlackRock, other companies like Bitwise, WisdomTree, and Valkyrie have also submitted applications for Bitcoin ETFs. The news has had a positive impact on the cryptocurrency market, as the price of Bitcoin has broken above $30,000 for the first time in two months.

The filing of the BlackRock application also has positive consequences for the company Grayscale Investments LLC. In the days since, the significant gap between the asset value of the Grayscale Bitcoin Trust (GBTC) and its underlying assets of $18.8 billion narrowed. This indicates that the possibility of turning the Grayscale fund into an ETF becomes more likely.

According to Bloomberg Intelligence, the SEC has a maximum of 240 days to make a decision on BlackRock’s application.

In short, BlackRock has done a 180-degree turn on its cryptocurrency stance and has filed an application for a Bitcoin ETF on the spot market. This indicates that the company is willing to delve into the world of cryptocurrencies, which could have a significant impact on the market in the near future.