2023-06-19
Blackrock is the world’s largest fund
manager with $8.59 tillion assets under management in 2022. It wants to offer a
spot Bitcoin exchange traded fund (Bitcoin ETF) by filing an application to the
US SEC on June 15. If the SEC approves, Blackrock’s Bitcoin ETF will trade on
the Nasdaq stock exchange. Blackrock will partner with Coinbase. Coinbase will
be Blockrock’s custodian for Bitcoin ETF.
It is not sure that the SEC will
approve Blackrock’s application. ETF stands for exchange traded fund. ETFs
track certain indexes such as S&P 500. S&P 500 ETF will purchase stocks of 500
largest US companies and bundle to become a single stock. An ETF can be a basket
of securities according to the theme of investment such as E-Commerce ETF,
Cloud Computing ETF, or Semiconductor ETF. Usually, ETFs are a group of growth stocks in
growing sectors.
Cryptocurrency market is an economic
sector. Blackrock interest in Bitcoin is a positive sign for Bitcoin. It shows
a sign that Bitcoin is an asset class in the eyes of institutional investors.
