Bitcoin ETF: Positive development──Bitcoin enters a new stage | CoinDesk JAPAN

Many people are saying that a Bitcoin ETF will be approved as early as this week. This is a milestone for Bitcoin (BTC), but it may just be the media hype.

Bitcoin is already attracting mainstream attention and interest from Wall Street. What Bitcoin ETFs bring to the table, in addition to the potential for positive momentum in the Bitcoin price, is a sign of maturity.

In other words, the bull case for Bitcoin ETFs boils down to “legalization.” Even before Gary Gensler, the current head of the U.S. Securities and Exchange Commission, took office, the U.S. government had rejected ETF approvals, citing the potential for market manipulation and fraud. ETFs are a type of mutual fund, a relatively new and rapidly growing branch of traditional finance.

The mere fact that traditional financial giants like BlackRock, Fidelity, and VanEck are seeking approval to sell Bitcoin ETFs is already creating a lot of buzz. Larry Fink, CEO of BlackRock, the world’s largest asset manager, said his company was interested in a Bitcoin ETF because it saw legitimate demand from customers.

Related article: The need for crypto assets is increasing around the world: BlackRock CEO Larry Fink

Expanding the possibilities of financial products

While various crypto asset-based ETFs already exist, the long-awaited Bitcoin Spot ETF will not only make it easier for institutional investors to invest in Bitcoin, but also allow retail investors to indirectly invest in Bitcoin. can be held in a retirement account or 401K. This will bring in new buyers and sellers of Bitcoin, including financial advisors who have been looking for solutions for crypto investing for years.

And, perhaps more importantly, the financial products that will be built around Bitcoin ETFs are part of the “model portfolios” that BlackRock creates for individuals to ultra-high-net-worth investors. Something like that. Bitcoin’s historic volatility can easily add new elements to ready-made investment products.

If this plug-and-play model becomes a reality, any financial institution will be able to add Bitcoin to many financial products, and millions of people will one day be able to indirectly invest in Bitcoin. The possibility of visiting expands. It could also be a political advantage for the crypto industry, as it could lead lawmakers to avoid making decisions that have a significant impact on their constituents.

Of course, there are many unanswered questions about Bitcoin ETFs, including whether they will become dominated by specific companies. For example, if BlackRock were to become the world’s largest Bitcoin holder, what would that mean for Bitcoin development and governance? Market surveillance is an SEC requirement, which is bad news for privacy, but is it also a backdoor to censor trading?

Bitcoin holders will need to monitor the situation closely for a while, but first a Bitcoin ETF must be approved.

Related article: Bitcoin ETF: Negative development – the price of losing vision

｜Translation/Editing: CoinDesk JAPAN Editorial Department
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