What is the latest news involving the crypto market regarding BlackRock’s Bitcoin ETF? We take a look at the most recent news regarding the possible approval in the near future and some predictions.
BlackRock and the growth of BTC: impact of the Bitcoin ETF on the crypto market
According to the latest news, the value of BTC surged up to $35k earlier this week, reaching levels not seen in a long time.
This event was caused by the sudden display on the Depository Trust and Clearing Corporation (DTCC) website of a listing for an immediate ETF on Bitcoin, identified by the symbol iBTC, i.e., BlackRock’s BTC ETF.
However, shortly thereafter, the symbol was removed.
Although there was a slight decrease in prices, this was not a cause for concern. A very few hours later, the symbol reappeared.
In reality, the listing of this symbol has no tangible meaning, but crypto market participants interpret it as a possible signal of an approval coming for an immediate ETF on Bitcoin, thus explaining the surge.
Against this backdrop, a well-known analyst in the cryptocurrency field, Pentoshi, took the opportunity to speculate on a potential future rise in BTC based on the approval of a BTC ETF.
Importantly, Pentoshi stated:
“No one knows what will happen NEXT, not BlackRock […] Literally no one.”
However, he added:
“What we do know is that ETF experts see a 90% chance of approval and believe Bitcoin will remain a solid asset in a world where money is endlessly printed.”
Forecasting the future, Pentoshi suggested that:
“the long-term downside could range between $19 and $20, while the upside could reach $180 in the next five years, although this is pure speculation.”
Bitcoin’s jump: charges, prices and speculation around the ETF
Recently, on the same day that the US Securities and Exchange Commission (SEC) filed charges against the world’s leading asset manager, a price listing of the Bitcoin ETF emerged with the Depository Trust & Clearing Corporation (DTCC).
However, a DTCC spokesperson clarified that this price had actually been there since August.
The SEC fined BlackRock Advisors investment advisor $2.5 million, accusing the company of inaccurately presenting investments in the entertainment sector.
These investments were a significant part of an exchange-traded fund under BlackRock’s management.
According to SEC filings, the BlackRock Multi-Sector Income Trust (BIT) invested substantially in a printing and advertising company called Aviron Group, which was primarily involved in the annual production of one or two films through financing.
The SEC’s charges focus on the fact that BlackRock misclassified Aviron as a provider of “diversified financial services” in various BIT annual and semi-annual reports made available to the public.
In addition, BlackRock was accused of misinterpreting Aviron’s interest rate, declaring it higher than it actually was. However, BlackRock acknowledged these errors in 2019 and subsequently corrected the information regarding investments in Aviron in the following years.
BlackRock: allegations, sanctions, and the enigmatic path of the Bitcoin ETF
In this regard, Andrew Dean, co-head of the asset management unit of the SEC’s enforcement division, emphasized the fundamental duty of investment advisers to provide accurate information regarding activities within the funds they oversee.
In the case of BlackRock and its investment in Aviron, the firm failed to live up to this responsibility.
As compensation for the lack of accurate investment disclosure, BlackRock hence agreed to pay the $2.5 million penalty. It should be noted that this investment was not related to the cryptocurrency world.
However, as we know, the world’s leading asset manager has also attracted attention in the cryptocurrency sector through its proposed Exchange Traded Fund (ETF) spot on Bitcoin.
SEC charges against BlackRock for investment disclosure failures coincided with the appearance of its Bitcoin ETF on the Depository Trust & Clearing Corporation (DTCC) price list.
As a result, this event led many people to speculate that the approval of the spot ETF on Bitcoin was imminent.
Eric Balchunas, senior analyst at Bloomberg ETF, described the DTCC price as a “crucial step” in the process of bringing a cryptocurrency ETF to market.
However, shortly after its initial appearance, the Bitcoin spot ETF mysteriously disappeared from the platform, creating uncertainty in the cryptocurrency community.
Subsequently, a DTCC spokesperson clarified that the iShares Bitcoin ETF had indeed been listed on the platform since August and that this change did not indicate any regulatory approval.