According to QCP Capital, BlackRock Bitcoin spot ETF approval ‘seems very unlikely in the near term.
BlackRock’s spot Bitcoin ETF application has been evaluated by QCP Capital. However, the company wrote an evaluation report.
Bitcoin ETF Review from QCP Capital
Recently, many asset management companies have applied for a spot Bitcoin ETF. As the first spot Bitcoin ETF approval turned into a race, QCP Capital shared its assessment of BlackRock’s application. The report wrote that a spot Bitcoin ETF is unlikely in the near term due to the stance adopted by SEC chairman Gary Gensler towards cryptocurrencies.
SEC Chairman Gensler’s stance towards the cryptocurrency industry represents the barrier to Bitcoin ETFs. The price of Bitcoin has risen more than 20 percent since the world’s largest asset manager BlackRock applied to list a spot Bitcoin ETF in the United States.
This type of spot ETF filing will be the first of its kind, as it has so far been rejected by the US regulator, the SEC. QCP states that although institutional participation in Bitcoin continues to increase, the current SEC structure means that spot ETFs will not be allowed to materialize.
Under the leadership of current SEC Chairman Gary Gensler, the situation has been further complicated in the crypto industry as the agency has filed lawsuits against major crypto exchanges Binance and Coinbase. “However, we are not confident with SEC Chair Gensler that a true ETF approval will occur in the near future,” the update states. QCP’s view is particularly striking given that BlackRock has received only one SEC rejection out of 576 applications so far, as the researchers noted.
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