Friday, June 14, 2024

BlackRock and Fidelity Push for Bitcoin ETFs, Bitcoin Stocks Rally

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In a significant development for the cryptocurrency market, BlackRock has submitted a revised application for a Bitcoin exchange-traded fund (ETF) after regulators expressed concerns about its initial attempt. Meanwhile, Fidelity has also refiled its application for a Bitcoin spot ETF. These moves have sparked optimism among investors, leading to a rally in Bitcoin stocks such as Coinbase and Microstrategy. Let’s delve deeper into these updates and what they mean for the future of Bitcoin.

BlackRock’s Revised ETF Application:
BlackRock’s revised ETF application addresses the main objections raised by the Securities and Exchange Commission (SEC) regarding surveillance and custodial concerns. The company has stated that it will finalize a surveillance agreement with Coinbase, which will act as the custodian for the proposed ETF. Additionally, Coinbase will provide spot market data. Although the SEC found the initial application inadequate, the news of BlackRock’s revised submission caused Bitcoin prices to surge.

Fidelity’s Refiled Application:
Fidelity has also refiled its application for a Bitcoin spot ETF, citing the risk exposure of US investors without such a product. While the SEC has approved Bitcoin ETFs for futures trading, it has yet to approve a spot ETF due to concerns over fraud and manipulation. Fidelity’s move highlights the growing demand for a regulated spot ETF that enables traditional investors to gain exposure to Bitcoin.

Bitcoin Stocks Experience a Rally:
The news of BlackRock and Fidelity’s revised applications has had a positive impact on Bitcoin-related stocks. Coinbase, one of the leading cryptocurrency exchanges, saw its shares rise by over 10%. Similarly, Microstrategy, a business intelligence firm known for its significant Bitcoin holdings, experienced a 10% increase and reached its highest level in over a year. This rally suggests that investors consider the prospect of approved Bitcoin ETFs as a positive development for the digital currency.

Binance Bolsters Presence in Latin America:
In other news, Binance, one of the largest cryptocurrency exchanges in the world, has appointed Min Lin as its Head of Latin America. This move aims to enhance the user experience in the region by developing tailored products, services, and partnerships that cater to local demands. Lin plans to promote blockchain and cryptocurrency technology, expand educational partnerships, and engage in community outreach initiatives. Binance’s recent efforts, such as launching local currency crypto purchasing channels and partnering with Despegar for travel crypto payments, demonstrate its commitment to expanding its presence in Latin America.

The revised ETF applications by BlackRock and Fidelity indicate the growing interest and demand for regulated investment vehicles that provide exposure to Bitcoin. These developments have sparked a rally in Bitcoin-related stocks, signaling optimism among traditional investors. Additionally, Binance’s appointment of Min Lin as Head of Latin America underscores the importance of fostering growth and adoption in this region. As the market continues to evolve, it will be fascinating to observe how these advancements shape the future of cryptocurrency investment.

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