BlackRock, a major financial firm, has surprised the crypto community by applying for a Bitcoin ETF in the midst of strict regulatory measures in the United States.
Notably, BlackRock has opted for Coinbase as its custodial services provider, despite the recent lawsuit filed against Coinbase by the US SEC for violating custody rules and other charges.
Should the SEC approve BlackRock’s application, it has the potential to hasten the resolution of the legal dispute.
Industry experts specializing in cryptocurrencies have shared their insights on the matter.
WhaleWire, a well-known crypto analyst, suggests that BlackRock’s application for a Spot Bitcoin ETF with Coinbase as its custodial partner is likely to face rejection due to Coinbase’s noncompliance with SEC regulations.
Furthermore, ETFs are often regarded as tools for price manipulation, which could favor bullish investors.
Market analyst Will Clemente finds the situation ironic, given the divergent actions taken by the SEC.
6 years ago, Blackrock’s CEO Larry Fink called Bitcoin an “index of money laundering” when BTC was $6K.
Today they’ve filed for an ETF.
Everyone gets Bitcoin at the price they deserve. pic.twitter.com/YqdIQIJZwt
— Will Clemente (@WClementeIII) June 15, 2023
Despite granting approval for Coinbase’s initial public offering (IPO) in 2021, the SEC is now pursuing legal action against the company.
In contrast, BlackRock, which once criticized Bitcoin’s association with money laundering, has chosen Coinbase as its custodial partner. The pieces of this puzzle do not align.
This raises the question: Will the US SEC demonstrate favoritism towards BlackRock?
Experts in the crypto market offer their perspectives on these ongoing developments.
Some individuals believe that if the SEC grants approval to BlackRock’s application, it would signify a clear bias that benefits larger players in the industry while suppressing smaller ones.
One notable example is Grayscale Investments, which has actively advocated for converting the Grayscale Bitcoin Trust into a spot Bitcoin ETF.
If the SEC gives the go-ahead for BlackRock’s filing, Grayscale may potentially initiate a significant lawsuit against the securities regulator.
Will Clemente suggests that the approval of BlackRock’s spot ETF application would support the theory that Operation Chokepoint 2.0 aimed to eliminate native crypto companies in favor of established traditional firms closely tied to the US government, with the aim of exerting control over Bitcoin and other cryptocurrencies.
Furthermore, Caitlin Long, the founder of Custodian Bank, is conducting a poll to gather opinions on the recent developments involving BlackRock.
IF THE BLACKROCK #bitcoin ETF APPLICATION IS APPROVED before all other pending #bitcoin ETF applications at the SEC, you would conclude the U.S. is:
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) June 15, 2023
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