The mysterious journey of BlackRock’s Bitcoin ETF application and its potential approval in 2024 has garnered significant attention in the investment world. The approval process for an Exchange-Traded Fund (ETF) varies, often spanning several months to over a year due to factors like regulatory reviews and the complexity of the application. BlackRock, the world’s leading asset management firm with over 8.5 trillion in assets under management, filed for a spot Bitcoin ETF – the iShares Bitcoin Trust – on June 16, 2023. This filing has been a major catalyst for Bitcoin’s price growth, with the cryptocurrency gaining roughly +63% since the filing, reaching as high as $44,600.
BlackRock has set its ETF fee at 0.30%, which is notably lower than some of its peers. This competitive pricing could be an attractive feature for investors if the ETF is approved. The approval of BlackRock’s Bitcoin ETF, along with other competing ETF products, is highly anticipated and is expected to significantly influence Bitcoin’s price and the broader digital asset market. Analysts foresee a potential rise to $100,000 for Bitcoin upon approval.
The potential approval window speculated by experts is between January 5th and January 10th, 2024. If approved, multiple spot Bitcoin ETFs are likely to be greenlit simultaneously, providing investors with a variety of options to compare. Approval of a spot Bitcoin ETF has been delayed numerous times due to the SEC’s cautious stance toward cryptocurrencies. However, the recent wave of applications from large financial institutions has increased pressure on the SEC to approve these spot Bitcoin ETFs.
The imminent approval of U.S. Bitcoin ETFs has boosted optimism in the crypto market. An approval would not only catalyze Bitcoin’s price but also indicate a significant shift in the regulatory landscape, potentially attracting more institutional investors to the cryptocurrency space.
BlackRock’s strategic move to revise its spot Bitcoin ETF proposal ahead of rumored SEC approvals indicates the firm’s commitment to comply with regulatory standards and enhance its chances of getting the green light. The approval of BlackRock’s ETF would be a historic moment in the cryptocurrency market, potentially paving the way for more mainstream adoption of Bitcoin and other digital assets.