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Financial circles are buzzing with news of being considered by BlackRock, the world’s largest asset manager Application For Bitcoin Exchange Traded Fund (ETF). This development marks a significant move by one of the most influential financial institutions in the world of cryptocurrencies.
Anticipation is rising amid the revelation that BlackRock plans to use Coinbase Custody for the ETF, along with the crypto exchange’s spot market data, for pricing. This alliance represents an important step towards legalizing cryptocurrencies in traditional finance.
Notably, Bitcoin (BTC) and Coinbase (COIN) have not reacted to the news, but have simply continued to remain in the red, with both assets up 3.9% and 2.81%, respectively, over the past 24 hours.
Blackrock forays into crypto
The move marks a continuation of a collaboration that began last year BlackRock Partners With Coinbase To offer crypto directly to institutional investors.
As of now, details about the nature of the ETF – whether it will be spot or futures – remain unknown. especially, The Securities and Exchange Commission (SEC), responsible for regulating ETFs in the US, previously turned down every application for a spot bitcoin ETF.
However, several bitcoin futures ETFs have received regulatory body approval for trading, indicating a gradual warming towards the cryptocurrency.
Possible effect on the price of bitcoin
The news of BlackRock’s potential bitcoin ETF could significantly affect the price of BTC. Creating such an ETF would allow a wider spectrum of investors to gain exposure to bitcoin, potentially increasing demand and its price.
ETFs make it easier for institutional investors to gain exposure to bitcoin, opening new avenues for demand. analyst crypto charity crypto informed of Bitcoin registered a strong spot bid on Binance over the past few hours – a move not seen over the past few days.
Bitcoin has a local bottom, according to traders more likely If the decline in the asset continues in the days to come. At the time of writing, BTC is currently trading at $24,977, down almost 4%. Its The trading volume has also increased sharply in the last 7 days indicating massive trading activity.
Notably, from a technical perspective, BTC could still be prone to a sustained downtrend given that the asset has not hit a key support, which can be found in the order block at $24,500.
Furthermore, the association with BlackRock, a globally recognized asset management name, could lend credibility and legitimacy to bitcoin. This increased trust could lead to greater adoption rates and an upward price trajectory for bitcoin in the long run.
As seen in the past, any positive development or news regarding BTC ETFs has often led to an increase in the price of bitcoin due to increased demand from retail and institutional investors.
Featured image from iStock, Chart from TradingView
