{"id":25497,"date":"2023-06-15T17:52:46","date_gmt":"2023-06-15T21:52:46","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=25497"},"modified":"2023-06-15T17:52:46","modified_gmt":"2023-06-15T21:52:46","slug":"blackrock-inches-closer-to-launching-bitcoin-etf-potential-impact-on-btc-price","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/06\/15\/blackrock-inches-closer-to-launching-bitcoin-etf-potential-impact-on-btc-price\/","title":{"rendered":"BlackRock Inches Closer To Launching Bitcoin ETF: Potential Impact On BTC Price"},"content":{"rendered":"

Financial circles are buzzing with the news that BlackRock, the world\u2019s largest asset manager, is considering applying<\/a> for a Bitcoin Exchange Traded Fund (ETF). This development signifies a substantial move by one of the most influential financial institutions into the world of cryptocurrencies.<\/p>\n

The anticipation is growing amid revelations that BlackRock plans to use Coinbase Custody for the ETF, alongside the crypto exchange\u2019s spot market data for pricing. This alliance represents a significant step in legitimizing cryptocurrencies in traditional finance.<\/p>\n

Notably, Bitcoin (BTC)<\/a> and Coinbase (COIN) have not reacted\u00a0to the news but have only continued to dwell in red, with both assets down 3.9% and 2.81%, respectively, in the past 24 hours.<\/p>\n

BlackRock\u2019s Foray Into Crypto<\/h2>\n

The move marks a continuation of the collaboration that started last year when BlackRock partnered with Coinbase<\/a> to offer crypto directly to institutional investors. <\/p>\n

As of yet, the specifics about the nature of the ETF \u2013 whether it will be spot or futures \u2013 remain undisclosed. Notably,\u00a0The Securities and Exchange Commission (SEC)<\/a>, responsible for regulating ETFs in the U.S., has previously turned down every application for a spot Bitcoin ETF. <\/p>\n

However, several Bitcoin futures ETFs have gained the regulatory body\u2019s approval for trading, indicating a gradually warming stance towards cryptocurrencies.<\/p>\n

Potential Impact On Bitcoin Price<\/h2>\n

The news of BlackRock\u2019s potential Bitcoin ETF could significantly affect BTC\u2019s price. Creating such an ETF would allow a broader spectrum of investors to gain exposure to Bitcoin, possibly driving up demand and its price. <\/p>\n

ETFs make it easy for institutional investors to gain exposure to Bitcoin, opening up a substantial new demand avenue. Analyst crypto Daan Crypto reported<\/a> that Bitcoin had recorded a strong spot bid on Binance in the past few hours \u2013 a move that has not been seen for the past few days.<\/p>\n

According to the trader, Bitcoin\u2019s local bottom is more likely<\/a> in if the asset continues to the downside in the coming days. At the time of writing, BTC currently trades at $24,977, down by nearly 4%. Its\u00a0trading volume has also spiked over the past 7 days indicating massive trading activity.<\/p>\n

Notably, from a technical perspective, BTC could still be prone to a continuous downtrend, given that the asset hasn\u2019t hit major support, which can be found in the order block at $24,500<\/a>.<\/p>\n

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.<\/p>\n

As observed in the past, any positive development or news about BTC ETFs has often led to a spike in Bitcoin\u2019s price due to increased demand from retail and institutional investors.<\/p>\n

Featured image from iStock, Chart from TradingView<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Financial circles are buzzing with the news that BlackRock, the world\u2019s largest asset manager, is considering applying<\/a> for a Bitcoin Exchange Traded Fund (ETF). This development signifies a substantial move by one of the most influential financial institutions into the world of cryptocurrencies.<\/p>\n

The anticipation is growing amid revelations that BlackRock plans to use Coinbase Custody for the ETF, alongside the crypto exchange\u2019s spot market data for pricing. This alliance represents a significant step in legitimizing cryptocurrencies in traditional finance.<\/p>\n

Notably, Bitcoin (BTC)<\/a> and Coinbase (COIN) have not reacted\u00a0to the news but have only continued to dwell in red, with both assets down 3.9% and 2.81%, respectively, in the past 24 hours.<\/p>\n

BlackRock\u2019s Foray Into Crypto<\/h2>\n

The move marks a continuation of the collaboration that started last year when BlackRock partnered with Coinbase<\/a> to offer crypto directly to institutional investors. <\/p>\n

As of yet, the specifics about the nature of the ETF \u2013 whether it will be spot or futures \u2013 remain undisclosed. Notably,\u00a0The Securities and Exchange Commission (SEC)<\/a>, responsible for regulating ETFs in the U.S., has previously turned down every application for a spot Bitcoin ETF. <\/p>\n

However, several Bitcoin futures ETFs have gained the regulatory body\u2019s approval for trading, indicating a gradually warming stance towards cryptocurrencies.<\/p>\n

Potential Impact On Bitcoin Price<\/h2>\n

The news of BlackRock\u2019s potential Bitcoin ETF could significantly affect BTC\u2019s price. Creating such an ETF would allow a broader spectrum of investors to gain exposure to Bitcoin, possibly driving up demand and its price. <\/p>\n

ETFs make it easy for institutional investors to gain exposure to Bitcoin, opening up a substantial new demand avenue. Analyst crypto Daan Crypto reported<\/a> that Bitcoin had recorded a strong spot bid on Binance in the past few hours \u2013 a move that has not been seen for the past few days.<\/p>\n

According to the trader, Bitcoin\u2019s local bottom is more likely<\/a> in if the asset continues to the downside in the coming days. At the time of writing, BTC currently trades at $24,977, down by nearly 4%. Its\u00a0trading volume has also spiked over the past 7 days indicating massive trading activity.<\/p>\n

Notably, from a technical perspective, BTC could still be prone to a continuous downtrend, given that the asset hasn\u2019t hit major support, which can be found in the order block at $24,500<\/a>.<\/p>\n

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.<\/p>\n

As observed in the past, any positive development or news about BTC ETFs has often led to a spike in Bitcoin\u2019s price due to increased demand from retail and institutional investors.<\/p>\n

Featured image from iStock, Chart from TradingView<\/p>\n

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