The biggest asset manager in the world, BlackRock, is getting ready to launch an exchange-traded fund (ETF) for Bitcoin by capitalising on a potentially ground-breaking alliance with Coinbase and NASDAQ.
Analyst Nate Geraci recently suggested that BlackRock is acting as a middleman between the SEC and renowned bitcoin exchange Coinbase in a tweet.
A win-win-win situation would result from this move: the SEC would acquire control over a crypto exchange, Coinbase would maintain its operation, and BlackRock may become the first company to introduce a spot Bitcoin ETF in the United States.
The NASDAQ’s oversight of the spot market data that would be used to determine how much the proposed ETF would cost is a crucial component of this arrangement.
According to Fortune writer Jeff Roberts, NASDAQ’s cooperation would allay the SEC’s concerns about potential price manipulation. Such worries played a key role in the SEC rejecting earlier Bitcoin ETF filings.
The potential approval of this ETF may pave the way for institutional investors, including pension funds, to pour money into bitcoin. The credibility BlackRock’s entry into the Bitcoin ETF market and the NASDAQ’s involvement in the spot market will bring may allay the SEC’s worries.
The SEC’s recent legal steps against Coinbase highlight the urgent need for regulated cryptocurrency exchanges.
According to well-known Bitcoin investor Mike Novogratz, such a development would have a big influence on the cryptocurrency market.
He reiterated his backing for the BlackRock effort on Liz Claman’s show, according to U.Today, saying that the introduction of a Bitcoin ETF by BlackRock would be the “best thing” for Bitcoin.
