28. November 2023

• BlackRock recently filed an application for a spot Bitcoin trust.
• This news has been received with excitement by some in the crypto industry, while others have raised concerns about it.
• The filing shows confidence in Bitcoin as an asset and may even boost Coinbase’s legal position against the SEC.

BlackRock Files for Spot Bitcoin Trust

BlackRock, the world’s largest asset manager, recently filed an application for a spot Bitcoin (BTC) trust, which could potentially drive investors’ confidence in Bitcoin and even boost Coinbase’s legal position against the U.S. Securities and Exchange Commission (SEC). Galaxy Digital CEO Mike Novogratz was among those over the moon with the news, while others warned of a hidden cost to this development.

Positive Reactions to News

During an interview on June 16th, Mike Novogratz said that approval of BlackRock’s ETF application would be “the best thing that could happen to $BTC”. Cryptocurrency analyst James Edwards of Finder.com commented that BlackRock’s willingness to press on with a Bitcoin ETF at a time when the SEC is on a warpath against crypto shows confidence in Bitcoin’s status as a commodity — rather than a security. He added that Blackrock likely wouldn’t partner with Coinbase had they not been “confident” in Coinbase’s legal position.

Concerns Over Institutional Takeover

While some were enthusiastic about this news, other argued that it undermined the “ethos” of decentralized cryptocurrencies or that companies like Blackrock may find ways to profit from retail investors instead of helping them out directly. Investor Scott Melker explained in a June 16th interview that such an approval would be unfair to crypto-native innovators who built up the industry from scratch without any major institutional support.

Implications for BTC Price?

It remains unclear what kind of impact this news will have on BTC price or whether it will lead to further institutional investments into cryptocurrency markets more generally — something many retail investors are hoping for but also wary of due to decentralization concerns outlined above.


Overall, BlackRock’s filing shows confidence in both Bitcoin as an asset and also boosts Coinbase ahead of its upcoming battle with the SEC — however, there are still concerns around potential centralization effects if more traditional institutions enter into crypto markets en masse without considering their implications thoroughly first.