BlackRock’s ETF Success Rate With The SEC Is 575 To 1, What About Its Bitcoin Application?

The world’s largest asset manager took a major step toward its involvement in the cryptocurrency industry this week by filing for a bitcoin spot ETF with the US Securities and Exchange Commission.

After several previous applications for such a product by other companies had failed before, the community wondered whether BlackRock’s effort was doomed from the get-go. However, Vishal’s success rate with the SEC has been unmatched so far.

History has to repeat but which way?

The COVID-19 pandemic, subsequent central bank monetary policies, and the rise in BTC price in 2020 and 2021 changed the game in a way that few were brave enough to imagine before that moment. Many institutions are starting to look more seriously at the cryptocurrency industry, and BTC in particular.

Back then, it was almost expected that a new institution or individual legacy investor would announce their bitcoin purchase on a weekly basis. BlackRock, despite initial hesitation, began with modest investments through the CME as well as encouraging comments from some of its executives.

While many institutions retreated during the bear market of 2022, especially in the wake of Terra Ecosystem and FTX’s loud collapses, BlackRock doubled down with a few more initiatives, including a blockchain ETF in Europe.

However, in June 2023, the behemoth made its biggest bet on the industry by applying for a bitcoin spot ETF in the States alongside Coinbase, which would be the custodian for the funds.

The move had an immediate positive effect on BTC and its price, which jumped over $2,000 in the first few days following the filing. The long-term consequences for the entire industry could be even more beneficial if the ETF is approved.

According Eric Balchunas — Senior ETF Analyst at Bloomberg — The chances are quite high, at least historically speaking. BlackRock’s success rate is astonishing when it comes down to its ETF applications with the SEC — 575 approved against only one denied.

In addition, the commission Allegedly Denied that application for an actively managed ETF because it didn’t require participants to disclose their holdings on a daily basis.

What About BTC ETFs in the States?

While the SEC has greenlighted a few bitcoin futures ETFs, it has rejected countless spot ETF applications. In fact, the never-ending rebuttal pushed Grayscale, which is trying to convert its flagship BTC offering into an exchange-traded fund, to sue the securities regulator.

The agency’s rationale has always been the same, claiming that the proposed ETFs failed to demonstrate how they would prevent market manipulation and fraud.

Additionally, the SEC has now gone after several crypto exchanges and tokens, alleging that most of the assets are unregistered securities. Nevertheless, its skeptical chairman – Gary Gensler – has admitted in the past that BTC is a commodity.

In any case, BlackRock’s timing is intriguing given the SEC’s overall negative stance toward the industry. Being one of the most influential financial players out there, however, begs the question of whether BlackRock knows something we don’t that will help it continue with its stupendous success rate or if it’s on its second L(oss ) will register.