Blackrock Enters Crypto Market With Bitcoin ETFs; Brings Credibility To The Space

After a year of major crypto exchanges crashing only to reveal a scam behind them, the virtual asset's viability and credibility as an investment vehicle has taken mutiple hits. Lawsuits against Coinbase and Binance for trading in unauthorised securities have also affected the prospects for cryptocurrency to become a serious instrument for investors.

But now one of the world's largest asset management firms Blackrock has placed its bets on crypto by launching a Bitcoin Exchange Traded Fund.

Making crypto credible again?

The ETFs are pooled investment instruments, which will track the price of Bitcoin, and they are secured by Coinbase as custodian.

As cryptocurrency exchanges seek legitimacy and approvals from the US Securities and Exchange Commission, Blackrock putting its weight behind them could be a positive development.

A major AMC entering the space also dismisses speculation that the recent turmoil and crashes may have driven the public away from cryptocurrencies.

A first in the US

Through Blackrock's Bitcoin ETFs, investors will get exposure to the leading cryptocurrency without buying any of it.

The US regulator hasn't approved Blackrock's application yet, but if it is accepted, this will be a first for the US.

At a time when almost 23,000 cryptocurrencies are available in the market, Blackrock's backing adds another layer of credibility to Bitcoin.