The biggest names in asset management, like BlackRock, Invesco, and Fidelity, are vying for regulatory permission for a Bitcoin ETF.
Nikolaos Panigirtzoglou, a strategist at JPMorgan, doubts if such clearance would have a substantial impact on the bitcoin market. Similar funds have been introduced in Europe and Canada, but Panigirtzoglou notes that neither market saw significant investor interest.
The potential market effect of these financial instruments is questioned by JPMorgan’s strategist as the US Securities and Exchange Commission (SEC) examines the avalanche of applications for spot-Bitcoin ETFs.
The establishment of a Bitcoin ETF, according to many Bitcoin observers, would undoubtedly alter the game. They use the gold ETF as an example, which when it was introduced had a significant influence on the price of gold and brought a wave of individual investors into the market. They think that a similar inflow might happen in the cryptocurrency market after the US government approved a Bitcoin ETF, democratising access to this new asset class.
Although the SEC has always been sceptical of Bitcoin ETFs, mostly because of worries about possible market manipulation, confidence has grown this year as a result of BlackRock’s filing. BlackRock is anticipated to increase trust in the procedure because of its virtually perfect track record of obtaining clearance for all varieties of exchange-traded funds.
Additionally, recent applications have shown an effort to allay regulators’ concerns, with a particular emphasis on surveillance-sharing agreements to allay suspicions about market manipulation.
In a recent statement about the company’s proposal for a spot Bitcoin ETF, BlackRock CEO Larry Fink emphasised the potential to ‘democratise’ cryptocurrency and level the playing field for investors.
It is yet unclear if the SEC will approve these petitions and what effect they would have on the bitcoin market.
