OPINION: It doesn’t take a massive leap of faith to believe that there is some client demand for “crypto exposure” and so BlackRock sees a spot Bitcoin ETF as the path of least resistance in offering that exposure to its clients, writes gckaloudis.
So yes, the institutions are back. But why did $10 trillion asset manager BlackRock and $1.5 trillion asset manager Invesco decide it was time for the spot bitcoin ETF again? Many have offered convoluted and tinfoil-hat theories .
Theories like BlackRock is scrambling to backstop Coinbase for some reason or the big firms are acting on behalf of three letter agencies to keep self-custodied bitcoin away from everyday people or that Wall Street can’t let the crypto crowd get too far ahead of them. There are more theories out there, but here’s a much simpler one: Financial institutions like making money and offering a spot bitcoin ETF is a way to make money.
Let’s focus on BlackRock for a second. If you operate under the assumption that BlackRock has clients and those clients have money they want to give to BlackRock and those clients are willing to pay BlackRock to take care of that money and that BlackRock listens to clients , then it doesn’t take a massive leap of faith to believe that there is some amount of client demand for “crypto exposure” that would make offering customers exposure to crypto worth it. In exchange, of course, for a fee.
The fact that BlackRock sees a spot bitcoin ETF as the path of least resistance in offering that exposure to its clients is a different story. BlackRock will only make money on this ETF if approved. So far about a dozen spot bitcoin ETF applications have been rejected by the SEC (though there are reasons to believe BlackRack’s latest application will satisfy the
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