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BlackRock files for a spot bitcoin ETF
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BlackRock files for a spot bitcoin ETF

The filing with the SEC comes 10 years after the first filing for a spot bitcoin ETF.

Welcome to our #186 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova


From The Purse


In this week’s newsletter, we focus on BlackRock’s filing for a spot bitcoin ETF in the US. It has been 10 years since the first filing for a spot bitcoin ETF.

However, investors are weighing up the latest development in the crypto industry’s battle with the SEC (U.S. Securities and Exchange Commission) regarding regulation and guidance.

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And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana


BlackRock files for a spot bitcoin ETF

The filing with the SEC comes 10 years after the first filing for a spot bitcoin ETF.


BlackRock, the world's biggest asset manager, on Thursday filed for a spot bitcoin exchange-traded fund (ETF) in the US, as reported by Reuters.

BlackRock's iShares Bitcoin Trust will use Coinbase Custody as its custodian, according to a filing with the U.S. Securities and Exchange Commission (SEC).

Crypto prices climbed a day after the announcement. But investors are weighing the latest development in the crypto industry’s battle with the SEC (U.S. Securities and Exchange Commission) regarding regulation and guidance.

If this ETF is approved, it is likely to open the floodgates to institutional investors adding bitcoin to their investment portfolios.

One of the purposes of bitcoin is diversification, as it is regarded as an ‘alternative investment’. It also has a different risk profile compared to traditional financial markets. So whilst this investment carries more risk, there is disproportionate upside for investors.

Referred to as ‘digital gold’…

…bitcoin is the largest cryptocurrency in the world, currently trading at $26,500 with a global cryptocurrency market capitalisation at around $1.10 trillion.

This year bitcoin has rallied 80% higher than previous year levels. However, the road to recovery is long, as bitcoin is still down almost 50%, from its all-time high which crossed $69,000, in November 2021. 

Bitcoin is a decentralised and permissionless (blockchain) technology and global monetary network which can not be controlled by any one party, government or central bank.

The SEC also recently confirmed the cryptocurrency as a commodity (not a security).

Unlike fiat money, bitcoin has a limited supply of 21m coins. It is impossible for more bitcoin to be ‘printed’ once all the supply is available.

Therefore unlike fiat money, bitcoin is deflationary, not inflationary. As an investor, the money you allocate to bitcoin, over a longer term horizon, should go up in value.

The price predictions for bitcoin vary from $250,000 to $1m++ by 2030.

Despite its volatility, bitcoin is increasingly regarded as ‘sound money’ and a store of value by retail investors and institutions alike.

The iShares Bitcoin Trust would become the first approved ETF…

…in the U.S. to track the price of bitcoin. It has been 10 years since the first filing for a spot bitcoin ETF (and every application has been rejected).

BlackRock’s filing comes a week after the SEC sued Coinbase, its crypto custody partner, for violating securities laws.

It is believed that BlackRock’s commitment to Coinbase is almost as important as its commitment to bitcoin in the long term.

What next?

Disclaimer: I invest in BTC, ETH, and other altcoins. Please do your own research. This article is for informational purposes only, we do not provide investment advice.

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The Purse provides content for informational purposes only, we do not provide investment advice. Please do your own research or speak to a financial adviser.


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