In a rather surprising turn of events, financial giant BlackRock has filed an application for a spot-Bitcoin ETF amidst a massive regulatory crackdown in the United States. Interestingly, the company has chosen Coinbase as its custodial services provider – the same exchange recently sued by the US SEC for alleged violation of custody rules. Crypto market experts weigh in on how this move from BlackRock, if approved by the SEC, could lead to a swift settlement of the lawsuit.
Renowned crypto analyst WhaleWire shared their thoughts on the matter, stating that BlackRock’s spot Bitcoin ETF application has a 99% chance of being rejected, considering Coinbase’s noncompliance with SEC regulations. Market analyst and expert Will Clemente calls the situation “Hilarious,” as Coinbase, currently facing a lawsuit by the SEC, has been named as BlackRock’s custodial partner. This is a surprising partnership, especially since BlackRock once believed that Bitcoin was an “index of money laundering.”
As the crypto community speculates over why BlackRock would make such a move during a time when the SEC is closely monitoring the industry, some market players argue that if the financial behemoth receives approval from the SEC, it would indicate bias. This would suggest that the SEC is keen on supporting larger companies while suppressing smaller players in the industry.
Currently, Grayscale Investments is pushing to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF. If BlackRock’s filing is approved, there are speculations that Grayscale might file a massive lawsuit against the securities regulator. Commenting on the situation, Will Clemente writes, “If BlackRock’s spot ETF application gets approved, it is undeniable that Operation Chokepoint 2.0 was orchestrated to drive out crypto native companies and bring in large traditional firms that are buddy-buddy with the US govt to try and control Bitcoin/crypto.”
Caitlin Long, founder of Custodian Bank, has also initiated a poll on Twitter regarding the recent BlackRock developments, questioning the potential implications of the SEC’s decision. While the crypto community is abuzz with predictions and differing opinions on how this development might affect the industry, one thing seems certain – the outcome of the SEC’s decision on BlackRock’s ETF application could have a significant impact on the future of cryptocurrencies. As always, it is important to stay informed and conduct thorough market research before making any investment decisions in the ever-evolving world of cryptocurrency.
Source: Coingape
