BitcoinBTC and ethereum, the two largest cryptocurrencies, have rocketed higher this week following BlackRock’sBLK bitcoin bombshell (and partly due to a surprise move by China).
The bitcoin price has topped $30,000 per bitcoin, matching the level it reached in March ahead of a U.S.-led crypto crackdown, and boosting the combined bitcoin, ethereum and crypto market by around $100 billion in just a week.
Now, as BlackRock’s exchange-traded fund (ETF) bid triggers a flood of filings, the billionaire cofounder of New York-based crypto exchange Gemini, Cameron Winklevoss, has warned the “window” to buy bitcoin before the ETF “floodgates” open is “closing fast.”
It’s in times of crisis you need up-to-date information the most! Sign up now for the free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market
“The great accumulation of bitcoin has begun,” Cameron Winklevoss, who along with his brother Tyler pivoted to bitcoin and crypto after settling their dispute with Facebook chief executive Mark Zuckerberg over the founding of the social media company, posted to Twitter.
“Anyone watching the flurry of ETF filings understands the window to purchase pre-IPO bitcoin before ETFs go live and open the floodgates is closing fast,” he wrote, suggesting the arrival of institutional investors will resemble an initial public offering (IPO) of bitcoin.
Wall Street giants InvescoIVZ, Wisdom Tree and Valkyrie followed BlackRock with their own applications for bitcoin spot ETFs with the U.S. Securities Exchange Commission (SEC). BlackRock—the world’s largest asset manager with around $10 trillion in assets under management—offers hundreds of ETFs globally.
“While crypto still needs more than favorable macroeconomic tailwinds and institutional inflows into bitcoin, this is a welcoming development that reminds investors that crypto is here to stay,” Markus Thielen, head of research and strategy at Matrixport, wrote in an emailed note.
Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious
The SEC has previously rejected all spot bitcoin ETF applications, but some see BlackRock’s attempt as a potential game-changer.
“We can imagine that this BlackRock iShares ‘commodity’ bitcoin ETF will attract an allocation in the range of around $20 billion to $50 billion over time as ETFs that are focusing on gold alone hold around $100 billion,” Thielen wrote.
“This BlackRock announcement has a high probability of being approved by the SEC, and will drive continuous adoption from institutional investors for bitcoin.”
Follow me on Twitter.
