Unchained Why It Looks Like BlackRock Could Win America’s First Spot Bitcoin ETF - Ep. 509
Jun 23, 2023
James Seyffart, a research analyst at Bloomberg Intelligence, dives into the intriguing world of Bitcoin ETFs. He discusses why the SEC has rejected previous applications and what sets BlackRock's filing apart. Seyffart explores the significance of partnerships, like BlackRock's with Coinbase, amid ongoing legal challenges. He highlights the substantial advantages of being a first mover in the ETF market and explains the critical differences between spot and futures Bitcoin ETFs. The conversation unveils the potential impacts on the cryptocurrency landscape as TradFi giants maneuver for approval.
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SEC Objections and BlackRock's Approach
- The SEC's main objection to spot Bitcoin ETFs is the lack of a regulated spot market of significant size.
- BlackRock's application might be different due to a surveillance-sharing agreement with a spot exchange, likely Coinbase.
Coinbase as a Significant Market
- Coinbase might be considered a significant market if the SEC narrows its scope to USD exchanges or USD pairs.
- However, if the SEC considers the entire Bitcoin market, Coinbase's size might not be deemed significant enough.
BlackRock's Strategy
- BlackRock's filing might be strategic, either due to insider knowledge or the potential first-mover advantage.
- The first-mover advantage in the ETF market can provide huge financial benefits, as seen with BITO.