The Global Head of iShares and Indexed Investments at BlackRock Financial Management said that The finance company likely won’t launch crypto-linked exchange-traded funds (ETFs) anytime soon.
According to a Friday Financial News report, BlackRock executive Salim Ramji said that $ 9.5 trillion in assets under management company “has no current plans” to launch a cryptocurrency exchange-traded fund until additional regulatory clarity in the United States. He added that BlackRock is unlikely to be among the top in this emerging market for investments with exposure to cryptocurrencies, but the company needed to practice due diligence.
“Before wrapping or putting our brand on [cripto], we want to be sure that customers will be happy with us in five years, in ten years ”, Ramji said. “The regulatory environment for cryptocurrencies remains incredibly opaque and unclear.”
The Bitcoin (BTC) Strategy ETFs from digital asset manager Valkyrie and ProShares launched on the US stock exchanges in October. Both funds allow US investors direct exposure to cryptocurrency futures, with introductions likely prompted by Securities and Exchange Commission (SEC) chairman Gary Gensler, who hinted in August that the agency might be open to approving products. Exchange traded exposed to regulated BTC futures contracts.
ProShares fund reached more than $ 1 billion in assets under management in its first week of operations. Additionally, the BTC Strategy ETF has since risen to the top 2% of all ETFs in terms of total trading volume – roughly $ 400 million worth of stocks traded on November 10.
While the Valkyrie and ProShares BTC Strategy ETFs were launched a few days apart, asset manager VanEck’s offering has yet to be approved for listing on any exchange despite conflicting media reports identifying a launch date. firm. VanEck filed a prospectus for its Bitcoin Strategy ETF with the SEC on August 9, but is also awaiting approval or denial of its spot Bitcoin ETF by the regulatory body., which is expected to make a decision on November 14.
Bloomberg ETF Senior Analyst Eric Balchunas said that the chances of the SEC approving the VanEck fund are less than 1% given its history of denying offers from investment firms with exposure to cryptocurrencies.
“The Eagles are luckier to win the SuperBowl,” Balchunas said.
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