BlackRock’s recent filing for a Bitcoin (BTC) trust has generated mixed reactions within the crypto industry. Some observers believe it could be the best thing to happen to Bitcoin, while others express concerns about a potential institutional takeover. Galaxy Digital CEO Mike Novogratz expressed his enthusiasm for BlackRock’s ETF application, stating that its approval would be highly beneficial for BTC. James Edwards, a cryptocurrency analyst at Finder.com, sees BlackRock’s move as a vote of confidence in Bitcoin’s status as a commodity and Coinbase’s legal battle with the SEC. BlackRock’s decision to utilize Coinbase Custody is seen as a significant confidence boost for Coinbase.
On the other hand, critics argue that BlackRock’s actions undermine the ethos of decentralized cryptocurrencies and may lead to profits for the company at the expense of retail investors. Investor Scott Melker suggests that the approval could harm the industry’s pioneers, while Adam Cochran of Cinneamhain Ventures believes BlackRock might acquire discounted coins from retail investors. Steven Lubka from Swan Bitcoin shares a similar view, predicting that BTC’s ownership will be concentrated in the hands of BlackRock, Goldman Sachs, and other ETF issuers.
Several other investment firms, including ARK Invest, Grayscale, and Fidelity, have also applied to the SEC for Bitcoin and cryptocurrency ETFs. Since the news of BlackRock’s filing emerged, the price of BTC has increased by 2.2%, reaching $25,584 at the time of writing. The Fear & Greed Crypto Index also moved out of the fear zone, rising from 41 to 47, following the announcement of BlackRock’s filing.
