Chris Curl,
Editor
July 5, 2023
I remember in July of 2021 when BlackRock CEO Larry Fink made the rounds on TV claiming that Bitcoin was “worthless.”
He also emphasized that institutions had no interest in Bitcoin, leading many to believe that the digital asset’s momentum had run out.
Several years before that he described Bitcoin as “an index of money laundering.”
And yet, by 2022, Fink had done an about-face, offering an avenue for traditional investors to buy Bitcoin with the goal of expanding to other cryptocurrencies in the future. This was done by connecting BlackRock’s Aladdin investment platform to Coinbase Prime.
That same year, BlackRock also announced a spot Bitcoin private trust which gave its clients direct exposure to the digital asset.
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As the “crypto winter” continued throughout 2022, culminating in the
collapse of FTX and Alameda, many thought Bitcoin would sink to under $10,000. Others thought it would go to zero.
But instead, it rallied to begin 2023, showing surprising strength and resilience. Perhaps realizing that this thing wasn’t going away, Fink decided to pull the trigger on Bitcoin in a big way.
In June, BlackRock filed for permission to build a “spot market” Bitcoin-based exchange-traded fund (ETF). Several firms have tried to do this in the US but were all denied.
I have long speculated that the approval of a spot ETF for Bitcoin in the US would trigger a new crypto bull market.
Do I think it will happen this time?
Yes. And I think it’s obvious as to why.
BlackRock is the world’s largest asset manager with $9 trillion in assets under management (AUM). They also have an incredible track record for ETF approvals (575-1), not to mention a lot of political influence, especially among Democrats.
In this environment I think it’s only a matter of time before it gets approved. And I’m not the only one who thinks this.
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View PublicationsOther firms including Invesco, WisdomTree and Fidelity have flooded in filing for their own spot Bitcoin ETFs in anticipation of BlackRock’s eventual approval. Once approved, all of these firms will have to buy Bitcoin to hold and exchange for their clients.
I believe that this is the beginning of a significant institutional investment period for Bitcoin and that there is limited time left to front-run institutional demand for the asset.
I’ve been positioning my readers at Crypto Cycle to be prepared for this eventual tsunami. Don’t miss out on what might be your last chance to get in cheap.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle