BlackRock Has Filed for a Bitcoin ETF Application: What Does It Mean for the Crypto Industry?

BlackRock, the world’s largest asset manager with over $9 trillion in assets under management, has just filed for a Bitcoin exchange-traded fund (ETF) application with the US Securities and Exchange Commission (SEC). BlackRock will be using Coinbase (COIN) Custody for the ETF and the crypto exchange’s spot market data for pricing. Coinbase declined to comment.

This can have a significant effect on the cryptocurrency industry, especially considering that BlackRock manages around 10 times the market cap of the entire cryptocurrency industry at the time of writing. This article will explore how this financial instrument might work, as well as how it could help drive the crypto market.

What is a Bitcoin ETF?

A Bitcoin ETF is a type of investment vehicle that tracks the price of Bitcoin and allows investors to buy and sell shares of the fund on a regulated stock exchange. Unlike buying Bitcoin directly from a crypto exchange or a wallet, a Bitcoin ETF does not require investors to deal with the technical aspects of storing, transferring, or securing their digital assets. Instead, they can simply buy shares of the ETF through their brokerage accounts, just like any other stock or fund. The crypto equivalent of an ETF can include…