BlackRock Bitcoin ETF filing triggers wave of institutional interest BlackRock Bitcoin ETF filing triggers wave of institutional interest
Some institutional investors are indicating a bullish sentiment toward Bitcoin in the wake of recent SEC enforcement actions.
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Updated: Jun. 30, 2023 at 10:33 pm UTC
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A survey of professional investors conducted by Nomura-backed “digital asset business” Laser Digital found 96% are “keen to invest in crypto.”
Nomura is an investment bank and brokerage headquartered in Tokyo that spans 30 countries and holds ¥67.3 trillion ($475.4 billion) in assets under management.
Renewed institutional crypto interest
The survey comprised 303 professional investors managing a collective $4.95 trillion in assets between them.
In addition to the high percentage of professional investors “keen to invest in crypto,” the survey also showed 82% had a positive outlook on Bitcoin and Ethereum, and 88% said they or their clients were considering investing in cryptocurrencies.
Commenting on the results, Laser Digital chief executive Jez Mohideen said:
“Our comprehensive study reveals that the majority of institutional investors surveyed saw a clear role for digital assets in the investment management landscape, and the benefits they can bring, such as greater diversification of portfolios.”
Between June 5 and 6, the U.S. Securities Exchange Commission (SEC) stepped up its campaign of digital asset enforcement by suing Binance and Coinbase over allegations of violating securities laws.
The SEC’s actions triggered market panic leading to a $133 billion sell-off, with the total crypto market cap finding a local bottom at $1.01 trillion on June 15.
BlackRock Bitcoin ETF
On June 15, asset manager BlackRock filed for a spot Bitcoin ETF against the wave of bearish crypto sentiment and hostile regulatory enforcement actions.
The chief executive of Bitcoin rewards app Lolli, Alex Adelman, said the BlackRock ETF application had reinvigorated institutional interest in Bitcoin. He expects “a new wave of institutional bitcoin-related financial products” from Wall Street to follow.
“As the world’s largest asset manager, BlackRock’s initiative to file a bitcoin ETF shows that there is increasingly strong demand for exposure to bitcoin among its clients, which include some of the biggest institutions in the world.”
The BlackRock ETF filing has sown division on numerous fronts, including whether the deeper institutional involvement is a net positive for the Bitcoin community. Regarding the application winning SEC approval, some point to BlackRock’s near-perfect track record on the matter.
However, litigator Joe Carlasare said he would be “shocked” if the application were approved as the proposed structure is “functionally identical” to past applications from other asset managers, which have all been denied.
Carlasare added that the path to the first spot Bitcoin ETF likely lies in accepting Grayscale’s application to transition its GBTC trust product into one.
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Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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Jacob Oliver
Jacob Oliver is a recovering academic and English teacher turned crypto journalist and web3 writer. He holds a Ph.D. from the University of Washington.
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BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.