In recent weeks, numerous institutional firms, including BlackRock, have filed for spot Bitcoin exchange-traded funds (ETFs) in the United States. According to Michael Sonnenshein, CEO of Grayscale Investments, this surge in filings serves as a ‘moment of validation’ for Bitcoin as an asset class. He emphasized that BlackRock’s commitment to advancing its crypto efforts only strengthens the credibility and longevity of Bitcoin.
If approved, the introduction of Bitcoin ETFs would provide both institutional and retail investors in the U.S. with a straightforward and compliant avenue to gain exposure to Bitcoin’s price without direct ownership. Sonnenshein highlighted the efficacy of the ETF wrapper, which has proven successful in granting access to various assets such as commodities and stocks. He stressed that Bitcoin is here to stay, and investors deserve convenient access to it.
Grayscale Investments, led by Sonnenshein, has been offering U.S. investors indirect exposure to Bitcoin through its Grayscale Bitcoin Trust (GBTC), allowing them to trade shares representing pools of Bitcoin. However, the company aims to convert GBTC into a spot Bitcoin ETF, eliminating the discount to net asset value currently associated with GBTC. This transition would provide investors with additional protection and a simpler means to trade Bitcoin’s price.
Grayscale previously filed a lawsuit against the United States Securities and Exchange Commission (SEC) in June 2022 after the rejection of its 2021 application to convert GBTC. If successful in challenging the SEC’s decision, Grayscale believes that billions of dollars in investor capital could be unlocked.
The filing by BlackRock for a spot Bitcoin ETF on June 15 had a significant impact on Bitcoin’s price, driving it up by over 20% in the following days. Bitcoin reached a year-high of $31,460 on July 6 and is currently trading at $30,633.
Overall, the increasing number of ETF filings for Bitcoin reflects growing institutional interest and acceptance of cryptocurrencies as a legitimate investment asset. BlackRock’s involvement further enhances the credibility of Bitcoin and suggests that broader adoption may be on the horizon.