{"id":163323,"date":"2021-01-26T17:53:00","date_gmt":"2021-01-26T14:53:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/blackrocks-entry-reflects-a-change-in-institutional-outlook-on-crypto\/"},"modified":"2021-01-26T17:53:00","modified_gmt":"2021-01-26T14:53:00","slug":"blackrocks-entry-reflects-a-change-in-institutional-outlook-on-crypto","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/blackrocks-entry-reflects-a-change-in-institutional-outlook-on-crypto\/","title":{"rendered":"# BlackRock\u2019s entry reflects a change in institutional outlook on crypto"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a283f2321435\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a283f2321435\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/blackrocks-entry-reflects-a-change-in-institutional-outlook-on-crypto\/#What_does_BlackRocks_entry_mean_for_the_market\" >What does BlackRock\u2019s entry mean for the market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/blackrocks-entry-reflects-a-change-in-institutional-outlook-on-crypto\/#Is_BlackRock_late_to_the_party\" >Is BlackRock late to the party?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/blackrocks-entry-reflects-a-change-in-institutional-outlook-on-crypto\/#Could_an_SEC-approved_Bitcoin_ETF_be_on_the_horizon\" >Could an SEC-approved Bitcoin ETF be on the horizon?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># BlackRock\u2019s entry reflects a change in institutional outlook on crypto  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvNWI4M2Q1YWYtMWFlOS00Y2I1LTkwYjUtOWMyNzU1MWJlNmI2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>On Jan. 20, BlackRock, the world\u2019s largest asset manager with over $8.7 trillion assets under management, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared to have given the green light to two of its associated funds, BlackRock Global Allocation Fund Inc. and BlackRock Funds, to invest in Bitcoin futures.\u00a0<\/p>\n<p>In this regard, the prospectus documents filed with the United States Securities and Exchange Commission suggest that BlackRock is looking to dabble in Bitcoin (BTC), especially as the first ever cryptocurrency has been added to the company\u2019s lists of derivative products cleared for use. <\/p>\n<p>Furthermore, over the last few months, the company\u2019s executive brass had spoken positively about Bitcoin, alluding to the fact that in the near future, a number of institutions may look toward digital assets to expand their list of financial offerings.<\/p>\n<p>For example, in an interview last November, Rick Rieder, chief investment officer of BlackRock, said that Bitcoin has the potential to \u201ctake the place of gold to a large extent.\u201d A somewhat similar sentiment was echoed by the company\u2019s CEO, Larry Fink, who told the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> that Bitcoin has caught the attention of the masses and has the potential to possibly evolve into a global market of its own.<\/p>\n<p>Lastly, it\u2019s also worth remembering that exactly one month ago, BlackRock posted a job advert seeking a qualified individual for the role of vice president, blockchain lead for its New York office. According to the post, the role required applicants to be able to devise and set in motion various strategies that can help \u201cdrive demand for the firm\u2019s investments and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> offerings.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_does_BlackRocks_entry_mean_for_the_market\"><\/span>What does BlackRock\u2019s entry mean for the market?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>BlackRock investing in Bitcoin futures is a significant step forward for the global crypto ecosystem, as it brings tremendous credibility to Bitcoin as a new asset class. Jason Lau, chief operating officer of cryptocurrency exchange OKCoin, told Cointelegraph that this move will set the stage for other asset managers to follow since most traditional asset managers are typically \u201cconsensus followers,\u201d adding:<\/p>\n<blockquote><p>\u201cWith BlackRock\u2019s announcement, other asset managers are going to be able to point to BlackRock\u2019s work in convincing their investment committees and the client investment boards about the potential and maturity of BTC and the crypto ecosystem.\u201d<\/p><\/blockquote>\n<p>Currently, CME futures and investments trust shares issued by Grayscale and Bitwise are two of the primary vehicles for institutions to get involved with crypto. However, due to this severe limitation, there have been large premiums from trusts versus the underlying price of BTC. For example, Lau stated that during the recent BTC price appreciation in December, Grayscale had a 40% premium on Bitcoin\u2019s underlying value.<\/p>\n<p>Kyle Samani, a managing partner at Multicoin Capital \u2014 a thesis-driven investment firm \u2014 told Cointelegraph that BlackRock\u2019s entry is a big step forward for the entire industry. He believes that by enabling some of its funds to go long on BTC, it will allow more investors to join the space.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_BlackRock_late_to_the_party\"><\/span>Is BlackRock late to the party?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While some are rejoicing at the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> of BlackRock making its way into the crypto market, Maksim Balashevich, founder and CEO of Santiment \u2014 a market intelligence platform for cryptocurrencies \u2014 told Cointelegraph that from a purely \u201cbehavior analyses\u201d standpoint, it\u2019s not just the big headlines that should be considered. <\/p>\n<p>Instead, the reaction of the masses, which, more often than not, is the single most crucial factor that determines market price action, could be more decisive. He added: \u201cBlackRock\u2019s entry is no special event but just yet another \u2018latecomer\u2019 from \u2018big money\u2019 funds. The move won\u2019t have any implications except further professionalizing, increasing the liquidity of the market.\u201d<\/p>\n<p>When asked about the impact BlackRock\u2019s entry may have on Bitcoin\u2019s potential value stabilization, Balashevich pointed out that despite these \u201cbig moves,\u201d crypto volatility is here to stay and that many more ups and downs will happen in the coming months. \u201cPlayers like BlackRock are sharks playing against each other,\u201d he said. <\/p>\n<p>Lastly, on the subject of whether the point of saturation in terms of institutional entry into this space is getting closer, he believes that the industry is indeed \u201cgetting very close to the top\u201d and that \u201cthere aren\u2019t too many big players left to enter the market.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Could_an_SEC-approved_Bitcoin_ETF_be_on_the_horizon\"><\/span>Could an SEC-approved Bitcoin ETF be on the horizon?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Historically, the SEC has rejected a number of ETF proposals \u2014 such as those submitted by Phoenix Wilshire, Gemini, etc. \u2014 sighting price manipulation, lack of liquidity and price indexing sources as key concerns. However, with BlackRock making inroads into this space, it seems as though the stage may finally be set for an ETF being approved sometime in 2021, as Lau pointed out:<\/p>\n<blockquote><p>\u201cAn increasing number of large reputable financial firms a la BlackRock, Guggenheim, SkyBridge, etc. are entering the crypto space and lending their sign of approval. This may give the regulatory body more confidence in the maturation of the crypto market and the need for an ETF to give further access to crypto.\u201d<\/p><\/blockquote>\n<p>He pointed out that it will be extremely interesting to see if BlackRock\u2019s ETF business, iShares, decides to become the first major mover to recognize this fast-opening window of opportunity and file for an ETF itself. Recently, investment management firm VanEck has once again <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1838028\/000093041320002664\/c100811_s1.htm\">submitted<\/a> an application with the SEC to create a new Bitcoin ETF. This move was followed by another similar application <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1841175\/000138713121001118\/valkyrie-s1_012221.htm\">submitted<\/a> by Valkyrie Investments. So the ETF race is back on following a brief period of calm.<\/p>\n<p>Also, with Bitcoin recently scaling past the $42,000 threshold, it appears as though a number of Wall Street institutions are quickly warming up to the crypto industry, as is highlighted by the fact that MassMutual recently became the latest big-name player from the realm of traditional finance to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/markets.businessinsider.com\/currencies\/news\/insurer-massmutual-scoops-up-100-million-worth-of-bitcoin-2020-12-1029885209\">acquire<\/a> $100+ million worth of BTC. <\/p>\n<p>Not only that, a number of high-profile investors such as Paul Tudor Jones and Stanley Druckenmiller have cozied up to this relatively new asset class in recent times and from the corporate domain, companies such as Square and PayPal have purchased Bitcoin. <\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/blackrock-s-entry-reflects-a-change-in-institutional-outlook-on-crypto\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# BlackRock\u2019s entry reflects a change in institutional outlook on crypto &#8221; On Jan. 20, BlackRock, the world\u2019s largest asset manager with over $8.7 trillion assets under management, appeared to have given the green light to two of its associated funds, BlackRock Global Allocation Fund Inc. and BlackRock Funds, to invest in Bitcoin futures.\u00a0 In&#8230;<\/p>\n","protected":false},"author":1,"featured_media":163324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvNWI4M2Q1YWYtMWFlOS00Y2I1LTkwYjUtOWMyNzU1MWJlNmI2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74898,74355,117,67874],"class_list":["post-163323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-sec","tag-adoption","tag-business","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/163323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=163323"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/163323\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/163324"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=163323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=163323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=163323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}