BlackRock Leading the Charge for Bitcoin ETF Approval
According to Martin Bednall, a former BlackRock executive, the world’s largest asset manager is spearheading the campaign for regulatory approval of a spot Bitcoin ETF. Bednall made these comments during a panel discussion at the 2023 CCData Digital Asset Summit in London. He noted that there has been a significant shift in sentiment within the asset management market and specifically within BlackRock itself.
BlackRock’s Evolution on Bitcoin
Bednall, who is now the CEO of Jacobi Asset Management, explained that BlackRock CEO Larry Fink was once skeptical of cryptocurrency and viewed it as shady and linked to money laundering. However, Fink’s views have changed over time. Bednall attributed this change to high-profile legal battles, such as Ripple’s victory over the SEC and Grayscale’s successful petitioning of the SEC.
Changes at BlackRock
Bednall emphasized that there has been a top-down transformation at BlackRock regarding its perception of Bitcoin. He stated that Fink now sees Bitcoin as a global asset in the form of digital gold, marking a complete turnaround in his perspective.
Influence of Regulators
Bednall believes that BlackRock’s change in attitude towards Bitcoin is not isolated but rather influenced by ongoing dialogue with regulators. He mentioned that BlackRock maintains close relationships with regulators worldwide and regularly engages in discussions with them. This suggests that regulators’ views on Bitcoin and ETFs may be aligning with those of BlackRock.
The Outlook for ETF Applications
The SEC recently extended the review period for spot Bitcoin ETF applications from BlackRock, Bitwise, and Valkyrie. Bednall remains optimistic about BlackRock’s potential to dominate the market for spot Bitcoin ETFs, predicting that they will capture the majority of assets under management (AUM) in this area. He also speculated that the SEC may approve all applications simultaneously to avoid giving any one firm a first-mover advantage.
Hot Take: BlackRock’s Push for Bitcoin ETF Approval
BlackRock, the world’s largest asset manager, is actively advocating for the regulatory approval of a spot Bitcoin ETF. This marks a significant shift in sentiment within the company and the broader asset management market. Formerly skeptical of cryptocurrency, BlackRock CEO Larry Fink now views Bitcoin as a global asset akin to digital gold. This change in perspective is influenced by high-profile legal battles and ongoing dialogue with regulators. While the SEC has extended the review period for Bitcoin ETF applications, industry experts believe that BlackRock has the potential to dominate this market. The approval of these applications may occur simultaneously to level the playing field among competing firms.
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