Securities and Exchange Commission (SEC) recently authorized the use of Mechanisms of creation and redemption in kind for the funds negotiated on the stock market (ETF) of bitcoin and cryptocurrencies. This decision could well give BlackRock a considerable advantage over its competitors.
- The SEC has authorized the mechanisms of creation and redemption in kind for cryptocurrency ETFs, giving a potential advantage to BlackRock.
- This decision marks a major turning point, facilitating the integration of cryptos into institutional portfolios, and could strengthen the dominant position of BlackRock on the market.
Blackrock at the top of the race
Blackrock, the largest asset manager in the world, made a request in January to authorize transactions in kind for his ETF Bitcoin. This request was followed by other giants like Fidelity. But, it’s Blackrock who seems to have taken a step ahead.
With about $ 10,000 billion in management as managementBlackRock led the charge to bring a long -awaited Bitcoin ETF on the market in 2024. Today, these funds hold nearly 1.5 million bitcoins, or about $ 170 billion.
The decision of the dry: a major turning point
The DRA’s decision to authorize the creation and buyout mechanisms in kind for the Crypto ETF marks a major turning point. Under the chairmanship of Gary Gensler, the SEC had preferred that these products were only in cash, which was perceived as an obstacle to efficiency for institutional market contents.
“It is a new day at the dry, and a key priority of my presidency is to develop a regulatory framework adapted to the markets of cryptographic assets. »»
Paul Atkins, president of the dry – source
The impact on the market
This dry decision could Expand BlackRock’s already monstrous advance on its competitors.
Greg Cipolaro, World Research Manager at NYDIG, told Forbes that this could hinder Fidelity’s position as the second player in the options market.
While volatility decreases, Bitcoin becomes more investable for institutional portfolios seeking balanced exposure to risk. With Ray Dalio, a pioneer in risk parity, recently recommending an allowance of 15 % of the gold and cryptos portfolio, demand could continue to grow.
