June 27, 2023
By Murtuza Merchant
Once more, the crypto-sphere is abuzz with chatter of its impending doom due to the SEC’s fresh wave of actions. However, contradicting the doomsayers, the financial behemoth BlackRock has something bold up its sleeve.
BlackRock recently made waves by announcing its plan to roll out a Bitcoin Exchange Traded Fund (ETF). This ETF is set to offer investors a slice of the action in the Bitcoin arena without owning the cryptocurrency directly. The noteworthy point here is that BlackRock, the global colossus in asset management, is taking the reins of this ETF while roping in Coinbase Custody to serve its investors.
History is littered with failed attempts to launch Bitcoin ETFs, including the much-publicized effort by the Winklevoss twins. But BlackRock’s entry into this space is different — they bring to the table a formidable record of 575 successful ETF launches out of 576 attempts. Betting against those odds seems foolhardy.
This audacious move by BlackRock screams optimism for cryptocurrencies. Their bullish stance should serve as a wake-up call for investors.
Raj Kapoor, Founder, Blockchain Governance Council, told NFTMetta says the application also dispels the macroeconomic, regulatory, and market uncertainty that has plagued the asset class for months.
“If the fund is approved and BlackRock enters the bitcoin market, there is a good possibility that this would eliminate any liquidity concerns which loom large presently. It cannot be imagined how much attention a BlackRock-sponsored Bitcoin ETF would garner. BlackRock is the world’s greatest asset manager. At the very least, it would lend an air of legitimacy, and that air should generate a substantial influx of cash,” he says.
SEC Playing Hardball:
What’s the Takeaway? Recently, the SEC has been donning the hat of a watchdog more aggressively. Major crypto exchanges Coinbase and Binance have found themselves in the SEC’s crosshairs, facing lawsuits for alleged security law violations. The SEC also labelled several cryptocurrencies as securities by applying the Howey Test.
It’s becoming increasingly clear that the U.S. government is eager to have a firm grip on the crypto industry through collaboration with Wall Street, rather than pushing it to the brink of extinction.
Spotlight on Certain Cryptocurrencies The SEC’s keen eye is currently fixed on these cryptocurrencies:
However, conspicuously absent from this list is Bitcoin. The combination of BlackRock’s anticipated Bitcoin ETF and Bitcoin evading the SEC’s scrutiny could very well ignite Bitcoin’s next upward trajectory.
While some investors may have shied away from keeping a significant Bitcoin holding, as it didn’t match their appetite for higher returns, however, the tide seems to be turning, and investors are now inclined to designate a considerable chunk of their portfolio to Bitcoin. A tenfold increase would be a windfall.
In addition, as Bitcoin thrives, it is likely to usher the altcoin market into a boom phase. This means that potent cryptocurrencies with pragmatic applications may also ride the wave.
The silver lining for cryptocurrency enthusiasts is that despite the ongoing legal tussles and regulatory uncertainties, prices are likely to remain subdued for the rest of 2023. However, as the economic dynamics shift in 2024, the crypto market might witness a bull stampede.
This is an opportune time to snag cryptocurrencies that offer real value at bargain prices. These tokens include:
AirTor Protocol (ATOR)
Morpheus Network (MNW)
Aside from Render, the others have the potential to multiply by fifty in terms of returns. Render, being already high in market capitalization, might achieve twentyfold returns.
What’s Your Game Plan for Crypto’s Future?
The unfolding events in the crypto market are a reminder that it is an ever-evolving landscape. BlackRock’s entry into the Bitcoin ETF space is a testament to the growing relevance and potential of cryptocurrencies. On the other hand, the SEC’s recent actions are indicative of the regulatory hurdles that the industry needs to navigate.
As an investor, it’s crucial to stay informed and agile. Whether you are a seasoned trader or a newcomer, now might be the time to re-evaluate your investment strategies and consider how you want to participate in what could be an exhilarating chapter in the world of cryptocurrencies.
BlackRock’s confidence and strategic move may very well be a harbinger of the exciting opportunities that cryptocurrencies can offer. With prudent choices and a well-thought-out investment strategy, this might be the moment to make a mark in the dynamic realm of digital currencies.
Anndy Lian, the author of “NFT: From Zero to Hero,” says that the statement suggesting that Bitcoin’s value depends on individuals rather than institutions holds some validity.
Bitcoin operates as a decentralized digital currency, influenced by multiple factors such as market sentiment, adoption rates, technological advancements, macroeconomic conditions, and regulatory developments, he says.
The actions and sentiments of individual investors, along with broader market dynamics, play a critical role in shaping Bitcoin’s value, he adds.
“Nevertheless, it’s important to acknowledge that while immediate reactions to negative news might not always align with expectations, long-term effects can still be substantial. Market sentiments can shift, and sustained negative news or regulatory actions can have enduring consequences on the broader cryptocurrency market,” according to Lian.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.