The world's largest asset management company , BlackRock, Inc. (NYSE: BLK ) ordered a bitcoin exchange-traded fund (CRYPTO: BTC ) on Thursday, sending ripples through the cryptocurrency space.
The ETF will be called the iShares Bitcoin Trust . Its assets mainly consist of bitcoins owned by Coinbase Global, Inc. (NASDAQ:COIN), which will act as trustee on behalf of the fund.
What happened? Google chief Peter Schiff, a cryptocurrency skeptic and opponent of bitcoin and the like, suggested on Saturday that BlackRock may have had an ulterior motive in launching a fake bitcoin ETF.
Economists believe that the fact that investment firms submitted bids despite knowing that previous bids had been rejected suggests that BlackRock may be trying to capitalize on the benefits generated by the news.
Schiff said BlackRock might buy bitcoin, then approached the EFF, knowing the news would boost the leading cryptocurrency. He added that this will allow the company to sell cryptocurrencies at a high profit.
See also: How to buy Bitcoin (BTC).
Why is it important? Schiff's comments about previous application rejections couldn't be further from the truth. The SEC denied Grayscale Investment's request to convert its flagship Grayscale Bitcoin Trust ( OTC:GBTC ) into an ETF in mid-2022. Grayscale later sued the regulator, accusing the regulator of arbitrarily denying bitcoin funds. Bitcoin futures contracts.
In late 2022 , the Wisdomtree Bitcoin Trust was also rejected by the SEC, citing inadequate investor protection.
BlackRock's move comes as the SEC wages war on cryptocurrency exchanges such as Coinbase and Binance. Regulators filed lawsuits against the exchange for trading in unlisted securities, a development that led to the collapse of many cryptocurrencies.
At a recent check, bitcoin was trading at $ 26,455.95 , up 2.45%, according to data from Benzinga Pro. The most popular cryptocurrency has appreciated by about 2% in the last week.
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