TL;DR
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Bitcoin spot ETFs don’t exist in the US yet. And it’s not for lack of trying – Gemini and Grayscale have both tried to get blockchain ETFs approved.
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Now BlackRock, a company with 9.5 TRILLION DOLLARS under management, is rumored to be trying its hand at launching a US Bitcoin ETF.
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If you’re a Bitcoin holder, this is a big deal! Even a 1-2% allocation of total funds from BlackRock could have MASSIVE effects on the BTC price.
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That said, a 1-2% allocation would also lead to BlackRock owning ~20% of all the Bitcoin in existence, at today’s prices. (Allowing BlackRock to hoard all of the available coins).
Full Story
Have you ever befriended someone who owns a boat?
It’s awesome! You get all the benefits of owning one, without the management and upkeep.
That’s kind of how Exchange Traded Funds (ETFs) work.
The fund buys a bunch of some ‘thing’ – let’s say, Bitcoin – then investors can buy shares in the fund.
(So they end up owning Bitcoin by proxy).
The benefit is, the ETF shareholders don’t need to figure out how/where/when to buy/sell/store the Bitcoin.
(The fund managers do all of that for them).
Only problem with this example is:
This kind of Bitcoin ETF doesn’t exist in the US.
And it’s not for lack of trying – Gemini and Grayscale have both tried to get blockchain ETFs approved by the SEC, but neither have found success.
Now BlackRock, a company with 9.5 TRILLION DOLLARS under management, is rumored to be trying its hand at launching a US Bitcoin ETF.
…ok, who cares?
If you’re a Bitcoin holder, this is a big deal!
Even a 1-2% allocation of total funds from BlackRock could have MASSIVE effects on the BTC price.
…that said, a 1-2% allocation would also lead to BlackRock owning ~20% of all the Bitcoin in existence, at today’s prices.
The upside: Bitcoin could go up, significantly. The downside: Bitcoin could go up significantly, and price most people out of owning a meaningful amount of BTC.
(Allowing BlackRock to hoard all of the available coins and kind of own the market).
Either way, a BTC spot ETF in the US would be great news for Bitcoin!
