SEC Further Delays BlackRock Spot Bitcoin ETF Amidst Growing Institutional Interest

US SEC further delays the decision on BlackRock's spot Bitcoin ETF proposal amid growing institutional interest in digital assets. Find out why and the potential implications.

Posted 8 months ago in Bitcoin


Illustration of Bitcoin symbol alongside traditional finance symbols. The US Securities and Exchange Commission (SEC) yet again deferred the decision on spot Bitcoin ETF applications from leading financial giants BlackRock, Valkyrie, and Bitwise. This extension, signifying a prudent regulatory approach, reflects the mounting deliberation on intertwining traditional finance and cryptocurrencies. The SEC’s decision sprung from concerns about potential fraudulent and manipulative practices. Subsequently spotlighting the call for a deeper review of the legal and policy implications enveloped in these applications. The agency, inviting more commentary from the public, posed queries on the robustness of the Bitcoin market’s liquidity. It also questioned transparency, alongside the effectiveness of a proposed surveillance-sharing agreement with Coinbase in curbing fraud. This narrative mirrors the cautious optimism within the traditional financial spectrum toward Bitcoin. BlackRock, a towering entity with a $98 billion asset under management, embodies this shift. Its CEO, Larry Fink, who once relegated Bitcoin to a Ponzi scheme status, now heralds it as a competitor to fiat currencies. “If you look at the value of the US dollar, how much it depreciated over the last two months, and how much it appreciated over the last five years… An international crypto product can really transcend that,” Fink said. A roundtable discussion led by Rob Nelson unveiled this evolving acceptance, indicating a broader institutional shift. Co-panelist David Zell spotlighted notable transformations like Michael Saylor’s journey from a Bitcoin skeptic to a staunch proponent. The ripple effect of such endorsements, as analyzed by Grant McCarty of the Bitcoin Policy Institute, alleviates reservations among average investors. This is especially important when traditional investment behemoths like BlackRock and Fidelity venture into Bitcoin ETFs, signaling a growing acceptance. “There’s a growing recognition that Bitcoin holds a distinct position, separating itself from the myriad of tokens and ecosystems,” McCarty said. The discourse takes a futuristic turn as analysts like Crypto Rover project a bullish surge in Bitcoin’s value if BlackRock’s ETF application gains a regulatory nod. Indeed, Rover sees Bitcoin rocketing to over $200,000. This, among other facets, epitomizes the confidence vested in BlackRock. This is an entity once sought for counsel during the 2008 financial crisis by the US government. Disclaimer: In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Last updated 9/28/2023, 7:01:15 PM

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