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This is an exciting time to be a Bitcoin supporter. Asset manager BlackRock, along with many other companies, is trying to get the SEC to allow them to create a spot Bitcoin ETF. Now, this is not the first time this has been tried. The SEC has rejected many others who have wanted to create a spot Bitcoin fund. While it isn't certain that the SEC will approve BlackRock creating this fund either, I definitely believe that BlackRock has the best chance of getting this done. They are the largest asset manager in existence with around 10 trillion dollars in assets under management. If anyone can get the SEC to approve this ETF, it is BlackRock, and if they do get this ETF created, I believe this will be very successful.
I believe this will be successful for many reasons. One is that the quickest ETF to ever reach a Billion dollars under management is actually a Bitcoin themed ETF. Proshares created a Bitcoin futures ETF traded under ticker BITO that reached over a billion dollars in inflows in just two days. This ETF is different than the one BlackRock is trying to create. BITO buys Bitcoin futures which bet on the price of Bitcoin in the future. BlackRock is trying to create a spot Bitcoin ETF that matches the current price of Bitcoin. BITO proved that there was market demand for a Bitcoin themed ETF, and I believe that there is more demand for a Bitcoin spot ETF than a futures ETF.
If one buys Bitcoin, they have to decide where to store it. They can download a digital wallet and store their Bitcoin there, but if they lose the seed phrase to that wallet, they lose all of their Bitcoin. Many people who believe in Bitcoin do not want to deal with the headache of storing it safely. They don't want to make new accounts just to buy it. An ETF would allow people to invest in Bitcoin through the brokerage they already use and not have to worry about storing their coins.
People will also be able to hold Bitcoin in their retirement accounts through this ETF. It'd also be an easier way for asset managers to begin exposing their clients to Bitcoin and for corporations to invest into Bitcoin. I believe this ETF will open the doors to a lot of people wanting to invest in Bitcoin.
The fund hasn't been approved yet, and I don't know if it will be approved, but I am very bullish on the possibilities. Hopefully, the SEC approves this fund.
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