Are BlackRock and Fidelity Looking to Own U.S. Crypto Through Bitcoin ETF Offerings?

an SEC-approved Bitcoin ETF could show the way to functional crypto investing in the U.S.

Robot appearing from smoke and a bunch of black rocks, looking at a bitcoin.
Created by Kornelija Poderskytė from DailyCoin
  • There are rumors that Fidelity is about to shake up the cryptosphere.
  • BlackRock’s ETF could be a new era for crypto in the U.S.
  • Does this spell the end for traditional centralized exchanges in the U.S.?

The latest ETF-like application put forward by BlackRock could be the start of a snowball effect in the U.S. towards a new cryptosphere. 

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Following on the heels of BlackRock is rumored to be financial giant Fidelity, who may be putting forward their own Bitcoin ETF application to the SEC. Should Fidelity and BlackRock succeed, a new era of crypto could emerge out of the SEC-induced crypto lawsuit wreckage. 

Seismic Moves Coming from Fidelity 

According to chatter on Twitter, there are big moves coming from financial services corporation Fidelity towards the crypto sphere. Some believe Fidelity may make a bid for Grayscale or launch their own sport price Bitcoin ETF – or both.  

The implications of having a major Bitcoin spot price ETF have been discussed, at length, since the Winklevoss Twins tried to launch the first one in 2018. Many have also tried to get such a fund going, with little success and only a few similar products. 

A real spot Bitcoin ETF would be a more ‘legitimate’ way to invest in the crypto space as there would need to be purchasing of the digital asset. If Fidelity was to launch such a product, the firm, and its mass of institutional and retail investors, would have a lot more real exposure to Bitcoin. 

The closest to a Bitcoin ETF was seen when ProShares Bitcoin Strategy ETF (BITO) launched in October 2021 after gaining approval from Gary Gensler and the SEC. However, this ETF doesn’t invest directly in the asset but in Bitcoin futures contracts as an alternative.

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On the table for SEC approval currently is the BlacRock ETF, which is still under debate as to its true designation – is it a trust or an actual ETF? However, many feel that this fund put forward by BlackRock would tick all the boxes. 

Can BlackRock Break the Ice?

BlackRock, the largest asset manager globally, has an incredible track record for launching ETFs. It has attempted to launch 576 ETFs and only failed once. 

If their latest application were passed by the SEC, it would have enormous ramifications for the entire crypto space. Not only would the hopes of a Bitcoin ETF finally be granted, but the direction of crypto investment would be swayed forever in the U.S.

BlackRock has a long and steady history with the SEC, the same agency going after Coinbase and Binance, Ripple, and other crypto service providers. 

On one front, the SEC appears to be cutting down crypto innovation with these major lawsuits and allegations of altcoin securities. Still, on the other, an approved BlackRock ETF would be a new way for new investors to get their hands on crypto. 

On the Flipside

  • Despite the ProShares Bitcoin Strategy ETF (BITO) being an instant hit when it debuted, interest in the product has since waned due to the sharp decline in the value of Bitcoin and other cryptocurrencies.

Why This Matters

Should the SEC approve BlackRock’s ETF and Fidelity follows up with their own, it would be clear to see what type of crypto investing the securities agency would be happy with. It may spell troubles for Coinbase and others, especially those offering altcoins, but a new path to institutional Bitcoin investing may open up.

Read more about the BlackRock ETF: 

Understanding BlackRock’s Bitcoin Proposal: ETF, Trust, or Something Else?

Read more about the rollout of MiCA:

How MiCA Is Rolling Out and What Needs to Happen

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Darryn Pollock

Darryn Pollock is a South African-born, UK-based journalist and content writer for DailyCoin with a focus on regulation and legislation revolving around the cryptocurrency space. He has covered the evolving crypto regulatory space, and examined how the US has approached law-making to offer protection in the growth of innovation. Darryn values traditional journalistic principles of truth, accuracy, independence, fairness, and impartiality, and has a Bachelor of Arts degree in Journalism and Law from Rhodes University in South Africa.