BlackRock Shakes Up Crypto ETF Landscape

With a focus on disrupting the industry, the extensive distribution network of BlackRock positions it as a frontrunner, according to Balchunas.

BlackRock Shakes Up Crypto ETF Landscape

The largest asset manager in the world, BlackRock, has stunned industry analysts with its entry into the cryptocurrency ETF competition.

Bloomberg Senior ETF Analyst Eric Balchunas was astounded by the development, remarking, “I had no idea BlackRock was even considering this.

Balchunas emphasized the significance of BlackRock’s filing on the Blockworks Macro podcast, given the firm’s dominant position in the financial market.

He explained:

“BlackRock filing is just mind-blowing. They have so much going on; you think, and then Larry, I, you know, we all remember him kind of trashing crypto like five years ago. So, it made no sense to me. And so, when I saw it, I was like, ‘Oh my God.’”

The analyst, who had initially sanctioned odds of 1%, observed that BlackRock’s entry expeditiously increased those odds to 50%.

As for his speculations regarding BlackRock’s motivations, he suggested a potential revenue stream and an opportunity to disrupt the industry’s most expensive and potentially unreliable cryptocurrency exchanges. 

Balchunas provided an account of BlackRock’s past, highlighting the firm’s participation in the Federal Reserve’s market support initiative amidst the 2020 COVID-19 sell-off.

According to his assertion, the “fourth branch of government” position held by BlackRock might signify a significant transformation in cryptocurrencies.

The analyst further established a correlation by stating that BlackRock possesses the capacity to disrupt the cryptocurrency industry.

The individual deliberated on BlackRock’s prior focus on ESG (Environmental, Social, and Governance) funds, which encountered obstacles, and proposed that the firm perceives a fresh prospect in the market for crypto ETFs.

Furthermore, the recent triumph of Grayscale in a legal proceeding significantly increased the likelihood of ETF approval as a whole. Balchunas emphasized the shift in the SEC’s strategy, which involved proactive participation and solicitation of input, thus disrupting the previous year’s trend of radio silence.

However, he indicated that BlackRock’s entry, coupled with its extensive distribution network and the confidence of many advisors, makes it the frontrunner.