BlackRock and Fidelity both apply for bitcoin ETFs

[NotATether]

With all this catastrophic litigation against Binance and Coinbase and a legal battle against Greyscale by none other than the SEC, two asset managers Blackrock and Fidelity are applying for their own Bitcoin ETFs. (Source).

BlackRock manages ~8.1 trillion dollars worth of assets and a Fidelity manages ~4.2 trillion. Fidelity also wants to buy out Greyscale, who themselves would be in big financial trouble if these ETFs get approved - and they very much look likely to be, because these managers have a good record of getting their ETFs approved.

For reference, the entire crypto market cap is around ~1 trillion dollars (also from Reddit).

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[adaseb]

The Fidelity I guess is new. I am assuming it’s also not an ETF but it’s a trust since most likely a Bitcoin etf will never get approved.

This is not surprising since we will see more and more of these Bitcoin trust proposals in the near future. Will they approve it? Perhaps since it’s Blackrock and their products are almost always approved. Only 1 rejection out of 500 applications.

[pakhitheboss]

This might sound like conspiracy, but this is what I feel about this news. The government and the SEC want to control the flow of Bitcoin and this is the strategy that they came out with. Through these ETFs both these companies would try to wipe out exchanges from the US. As of now, the government is unable to track transactions happening between Exchanges and wallets. After the ETFS of both these companies is approved the government would compel its citizens to invest in Bitcoin through the ETF, for that they need to fill in all the details on a paper. Through those papers, they would be able to track Bitcoin and gain control over it.

To support my theory that exchanges would shut shop in the US. I would like to ask why SEC is backing up the Prometheum exchange. I had never heard of this exchange in the past. I came across this name 4 days back when I read this article. Everything about this exchange looks suspicious is grows more when SEC is backing it.

[mk4]

Just take note that Fidelity applying for a Bitcoin Spot ETF is still just a rumour. (Unless I've missed some news, that is.)

The BlackRock application alone is a good reason to be bullish though.

[franky1]

The Fidelity I guess is new. I am assuming it’s also not an ETF but it’s a trust since most likely a Bitcoin etf will never get approved.

majority of ETF's of any currency/asset offering, are and have been structured as trusts.
they purposefully separate the 'trust funds' asset holdings away from the main companies assets to avoid 'co-mingling' and having to pay taxes on trades/profits.

its what makes an ETF an ETF.. its what makes it different from standard company shares/stock options

[Z390]

Getting the ETF approval is the main issue right now, will this time be different from all the disappointing past declines? The Fidelity is new I guess but I still don't expect anything bullish from all this, not until something gets approved this time around, not the other way around.

There is a rumor going around that Fidelity is trying to buy Greyscale to be able to go for the 4.8 trillion ETF proposal, the future looks great for Bitcoin but none of these will matter if everything stayed a rumor and nothing is approved.

[348Judah]

BlackRock manages ~8.1 trillion dollars worth of assets and a Fidelity manages ~4.2 trillion. Fidelity also wants to buy out Greyscale, who themselves would be in big financial trouble if these ETFs get approved - and they very much look likely to be, because these managers have a good record of getting their ETFs approved.

If we are going to consider their both reputation, i think they are more deserving for the approval of these as requested, but we shouldn't also forget about many offers the SEC had turned away without approval on this same matter, though we believe with everything ongoing with the SEC which are the government representative in control of exchange traded funds and their recent regulations with exchange, they may likely grant this offer just on the benefits of their own end if the applicants can both meet up to thier requirements for granting this offer.

[DaveF]

I see that some people are vehemently against this, I see it as more the merrier.

Even if they are not good investment products for people, at a surface glance it shows others that Bitcoin can be a good investment.

Some people don't agree with BTC being investment but rather it should always be used for trade or something else that is more of an individual view.

I am a firm believer in not your keys not your coins, but and this is a big important *but* there are many people that don't have a clue about technology don't have a clue about investing and a host of other things. They could be brilliant pilot or and amazing auto mechanic or any of hundreds of other occupations, yet they could barely get to Chase to do their online banking. For them, having to explain how to them do it properly is probably more daunting than figuring out how to remove your own appendix.

With products like this, all they have to do it put in some money and click buy.

-Dave

[tread93]

With all this catastrophic litigation against Binance and Coinbase and a legal battle against Greyscale by none other than the SEC, two asset managers Blackrock and Fidelity are applying for their own Bitcoin ETFs. (Source).

BlackRock manages ~8.1 trillion dollars worth of assets and a Fidelity manages ~4.2 trillion. Fidelity also wants to buy out Greyscale, who themselves would be in big financial trouble if these ETFs get approved - and they very much look likely to be, because these managers have a good record of getting their ETFs approved.

For reference, the entire crypto market cap is around ~1 trillion dollars (also from Reddit).

Peter Schif posted something about Blackrock theoretically doing this knowing that if would have a bullish effect on the market just so that they could sell it down the road for profit, pure speculation but honestly that could be their strategy.....

[SquirrelJulietGarden]

Gary Gensler will no longer be able to arbitrarily approve or reject those applications.

Mr. Patrick McHenry and many USA. Congressmen and women are observing Gary Gensler and SEC. They can not interpret same legislation in different ways for different applications. They could do that in the past two years but will have more challenge from the Congress to do the same in future.

More companies are leaving the USA. because of such arbitrary regulations and it's bad in eyes of the Congress.

[Lucius]

~snip~
For reference, the entire crypto market cap is around ~1 trillion dollars (also from Reddit).

Assets under the management of the two companies are impressive, but one should not think that a significant part of these funds will start spilling over into BTC if the SEC approves that spot ETF at all. We thought that futures BTC ETF would have some impact on the price, and today no one mentions them anymore.

It's one thing to have a financial instrument that will make it easier for big investors to invest more easily, but something else is to convince them that Bitcoin is something they should invest in.

[avikz]

I guess BlackRock has already received the approval for their bitcoin ETF where Coinbase is going to become their custodian. Isn't it the case?

Fidelity's case is the new one. I am worried when I see such financial giants show their interest into something that they do not control yet. I understand and appreciate the fact that a lot of liquidity will flow into the crypto market due to such ETFs. But who will ensure that they do not start manipulating the market?

[coolcoinz]

Assets under the management of the two companies are impressive, but one should not think that a significant part of these funds will start spilling over into BTC if the SEC approves that spot ETF at all. We thought that futures BTC ETF would have some impact on the price, and today no one mentions them anymore.

It's one thing to have a financial instrument that will make it easier for big investors to invest more easily, but something else is to convince them that Bitcoin is something they should invest in.

There was a futures impact on the price - it went down.
The futures ETF was launched in the middle of the bitcoin's bull run and many people say that the run was cut short exactly because of that launch.
When you give big investors, who never wanted to buy bitcoin in the first place, a chance to short it you can expect they'll take this chance.
Bitcoin went from 20 to 60k in a few months of 2021, so it was obvious an asset that made 3x is going to be shorted by traditional investors who don't care about tech and want to make a quick buck.

The main difference between futures and spot is that to launch spot they need to own some bitcoin, so if blackrock gets the SEC to approve the price will pump. How much we can only guess, but I'm sure we'll go above this years high, to the high 30s, or higher.

[thecodebear]

I guess we should get ready for two more ETF rejections later this year lol.

These are I suppose the two biggest names yet to try to file a Bitcoin ETF, but as long as Gensler is head of the SEC I don't see any ETFs getting approved. Gensler hates Bitcoin and Crypto and wants to shut down the entire industry in America, no way his SEC approves a Bitcoin ETF which would help Bitcoin grow in America.

There is a bill getting started in Congress right now that would fire Gensler and redistribute power in the SEC a bit more so the head of the SEC wouldn't have so much control. I don't know if there is much chance of it getting passed (I very much doubt it), but kicking Gensler out is the only way an ETF is gonna be approved in the next few years (his term expires in 2026). So realistically it'll probably be at least 4 years until an ETF gets approved in the US.

I guess BlackRock has already received the approval for their bitcoin ETF where Coinbase is going to become their custodian. Isn't it the case?

Fidelity's case is the new one. I am worried when I see such financial giants show their interest into something that they do not control yet. I understand and appreciate the fact that a lot of liquidity will flow into the crypto market due to such ETFs. But who will ensure that they do not start manipulating the market?

No Blackrock has not received approval. And they will not. The SEC will not approve a Bitcoin ETF, at least not for a few more years, they have made this very clear over the past 5 years.

The head of the SEC hates bitcoin and crypto and wants to destroy the industry in America. There is zero chance of either of these ETF proposals being approved.

And no, even when ETFs do start to happen, perhaps at earliest late in this decade, they cannot manipulate the market. ETFs mean customers buy the ETF and the financial firm buys Bitcoin to hold on the customers behalf in the ETF. There is no manipulation of the market possible. It would simply be another avenue for more traditional finance people to get Bitcoin (granted they won't actually own Bitcoin, like as in be able to use it, ETF means they would simply own shares in the ETF and the financial firm would store the BTC for them purely as an investment asset, never to actually be used). The only effect of ETFs would be more Bitcoin gets locked away and off the market, which obviously would be have a bullish impact for Bitcoin's price.

[dwminer1]

Just take note that Fidelity applying for a Bitcoin Spot ETF is still just a rumour. (Unless I've missed some news, that is.)

The BlackRock application alone is a good reason to be bullish though.

It is true that Fidelity's apply for the Bitcoin Spot ETF is still unconfirmed, but the subject seems very likely to me. They certainly do not want to lag behind the competition that is BlackRock. And even if it turns out to be just a rumor, these events probably stopped some further declines in the crypto market.

[mk4]

It is true that Fidelity's apply for the Bitcoin Spot ETF is still unconfirmed, but the subject seems very likely to me. They certainly do not want to lag behind the competition that is BlackRock. And even if it turns out to be just a rumor, these events probably stopped some further declines in the crypto market.

That's too optimistic — knowing that BlackRock's spot ETF proposal isn't even guaranteed to go through even if you argue that it's likely.

Spoiler alert: a spot ETF isn't going to stop bitcoin from having price declines.

[spectre71]

Blackrock has like a 500 to 1 success rate with the SEC, some I'm betting on success.

Step in the FOMO's. DCA FTW

[dragonvslinux]

Does anyone genuinely think this will be approved anytime soon? Personally, I'm not convinced. The narrative of a Bitcoin ETF has been strong since 2020 but still there is no ETF.

I know the general theory that only an asset manager like BlackRock or Fidelity would be able to get the first ETF approved, in order to give traditional finance a first mover advantage, but even so with the news of Binance and Coinbase SEC lawsuits it still seems like a long way to go. The irony being that if there isn't an ETF approved this year, it'll probably take another few years during a consolidation period in the market.

[livingfree]

These are like signs of the upcoming bull run.

Step in the FOMO's. DCA FTW

Yep.

That's how should everyone react to these news but no matter what happens, whether these two or only one gets approved or even none then as an individual the key here is to DCA.

This is how we're going to enjoy the upcoming bull run. And these asset managers know what's in store if it comes.

[panganib999]

This might sound like conspiracy, but this is what I feel about this news. The government and the SEC want to control the flow of Bitcoin and this is the strategy that they came out with. Through these ETFs both these companies would try to wipe out exchanges from the US. As of now, the government is unable to track transactions happening between Exchanges and wallets. After the ETFS of both these companies is approved the government would compel its citizens to invest in Bitcoin through the ETF, for that they need to fill in all the details on a paper. Through those papers, they would be able to track Bitcoin and gain control over it.

To support my theory that exchanges would shut shop in the US. I would like to ask why SEC is backing up the Prometheum exchange. I had never heard of this exchange in the past. I came across this name 4 days back when I read this article. Everything about this exchange looks suspicious is grows more when SEC is backing it.

It makes sense. If you can't control it profit from it, eh? Plus it all just makes sense. Recent crackdowns against crypto and exchanges, the government going ham against people and entities who use cryptocurrencies in general, SEC taking actions against Binance, now even throwing the 'money laundering" card even though they don't really have verifiable evidence and Binance pragmatically operates on full without problem which would've been a good indicator that something was awry to begin with.

In any case, conspiracy or not I don't see this buyout as a win for the industry or for decentralization. They're vying for control that's for sure, and a large company doing that isn't going to sound well for the common joe.