BlackRock CEO Larry Fink Calls Demand for Crypto Rising

Previously, asset management giant BlackRock launched an exchange traded fund for Bitcoin. In documents filed on Thursday, (15/6/2023) the company seeks permission to sell currency through a means called iShares Bitcoin Trust.

This move is significant because of BlackRock’s enormous reach, and because it allows retail investors to buy Bitcoin as a stock ETF from a regular brokerage account.

Likewise, it will make it easier for institutional investors, including pension funds, to hold these assets. The ETF document states Coinbase will be tasked with holding the trust that underlies Bitcoin as a custodian.

The document also states the Nasdaq will keep an eye on pricing data that informs the spot market price of a potentially critical factor as the Securities and Exchange Commission has so far refused to allow Bitcoin ETFs, citing fears of market manipulation.

Bitcoin price, which has slumped due to regulatory pressure and the Federal Reserve’s hawkish monetary policy, briefly jumped about 3 percent on news of BlackRock’s filing.

While it’s gotten easier to buy Bitcoin in recent years with everyone from Coinbase to PayPal to Robinhood offering the crypto, there’s still no easy way to get it in traditional stock forms.

This proved to be a bottleneck for large institutions, which were subject to regulations limiting the types of assets they could hold on behalf of their customers.

Currently, the most popular option for acquiring Bitcoin in stock is the Grayscale Bitcoin Trust, which is not traded on a major stock exchange. Grayscale Bitcoin Trust also charges a management fee of around 2 percent annually, which many investors consider too high.

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