Experts explained that the ETF that BlackRock is applying for has an important distinction.
The crypto market has turned green as the world’s largest asset manager has applied for a Bitcoin ETF. BlackRock’s spot Bitcoin ETF application has become a lifeline for the industry. The application and its details have caused confusion in the crypto industry. Controversy ensued over whether BlackRock was applying for an ETF or a trust with similar characteristics to the Grayscale Bitcoin Trust (GBTC).
Experts explained that BlackRock’s application has an important distinction and is different from the Grayscale product.
Key Difference of BlackRock ETF
Noelle Acheson of Crypto is Macro Now and analyst Joe Consorti evaluated BlackRock’s ETF application. Experts noted that this ETF is not like the Grayscale Bitcoin Trust (GBTC).
Acheson stated that the ETF terminology is actually a complex structure. Also, Acheson said that BlackRock’s offer is a trust but trades just like an ETF as it has several divergences.
Acheson stated that the product released by BlackRock is not at all like GBTC, which does not have a refund mechanism, and that the market’s concern is unfounded.
The price volatility of nearly 40 percent in GBTC and the pricing that operates independently of BTC, caused concern in BlackRock’s ETF application. Addressing this issue, market analyst Consorti explained that Grayscale also tried to convert its product into an ETF, but was rejected by the SEC. Touching on the different side of the BlackRock ETF, Consorti said that Bitcoin will be purchased at the end of the day in order to align the fund with the asset price.
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