BlackRock is the world’s largest asset manager. They launched a spot Bitcoin private trust this is not an ETF it’s a private Trust for institutional clients. So that’s right to get access to this product you have to be you guessed a fat cat but at least they’re allowing the fat cats to actually invest in a spot Bitcoin private trust. This does signal that there is a lot of demand from the Fat Cat Market for Bitcoin products.
Blackrock last week announced that they were doing a partnership with coin base. They now are going all in on bitcoin. Blackrock has trillions of trillions of dollars so the world’s largest asset manager announced that they are going to launch a bitcoin private trust for their institutional clients. In that announcement they said they’re seeing tons of demand from those institutional clients even though the bitcoin price has fallen about 70% or so.
Bitcoin obviously liked this and started to rip upwards in terms of price, but here’s the thing that no one’s talking about I think it’s actually the big deal. Blackrock launching a bitcoin private trust to me says that they’re going to get into the ETF race. As far as we are aware, the Sec has not yet approved any Bitcoin spot ETFs in the United States. We have all sorts of bitcoin futures ETFs and we have bitcoin spot ETFs all around the world, but we do not have a bitcoin spot ETF in the united states.
So Blackrock this is what I think their plan is going to be. They’re going to launch that private trust they’ll eventually take it public it’ll look just like grayscale’s GBTC product, and then they’re going to go to the sec and they’re going to say we’re Blackrock let us convert our bitcoin private trust into the first bitcoin spot ETF.
Now what this does is it pits the world’s largest asset manager in the traditional world with the largest asset manager in the bitcoin and crypto world on a great scale, and that script is literally written for television. I can’t wait to see BlackRock’s impact on the bitcoin market but one thing that we should caution is we better be careful what we wish for.
Related: Is the Bitcoin Bear Market over?
Blackrock is still a very large wall street financial institution they do all kinds of crazy stuff and the more and more that bitcoin gets financialized the further it gets away from that cypherpunk dream. Ultimately BlackRock getting into the bitcoin market and providing direct exposure to their institutional clients which means that billions and maybe trillions of dollars are about to enter into a fixed supply asset, that only means one thing bitcoin will be keep doing exactly what it’s always done.