BlackRock’s filing of the iShares Bitcoin Trust in June stirred the crypto community’s hopes of a real Bitcoin ETF coming soon. And as Bitcoin regains momentum, there’s been quite a few crypto-adjacent stocks that are already experiencing their own bull runs.
A true spot Bitcoin Exchange Traded Fund (ETF) has long been considered the “dream” for institutional adoption of crypto assets. By making it easy for pension funds, family offices, or even just regular savers to have exposure to Bitcoin, the potential inflows into the ecosystem can be tremendous.
While there are some ETFs based on Bitcoin futures, these carry a “tax” on holders due to the need to roll the futures contracts as they expire. The value of a futures contract at the beginning of its period is often somewhat detached from the true underlying value, and this difference translates to futures ETFs underperforming compared to real BTC ownership.
BlackRock’s entry into the arena of spot ETF contestants is significant. It is, after all, the world’s largest asset manager with a direct line to D.C. Given that regulators have stopped previous spot ETF applications for Bitcoin, it appears likely that the firm may have some aces up its sleeve. Ironically, just five years ago in 2018, CEO Larry Fink was dismissing cryptocurrencies as the money launderer’s heaven.
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