you have but who you know.”
The cryptocurrency industry is a constantly evolving space with new companies entering the market every day. One of the latest developments is the filing of ETFs (Exchange Traded Funds) by two major companies, Blackrock and Fidelity. This has caused some to raise questions about fairness and the potential for disparity in the market.
Blackrock is the first company to file for an ETF, and they have a SEC ETF approval rate of 575-1, which makes it very likely that they will be approved. If they are, it would create a sharp contrast between their situation and the situation of Grayscale, a company that has been attempting to obtain a Bitcoin ETF for some time but has been denied by the SEC. If Blackrock is approved before Grayscale, Grayscale would not only miss out on being the first to market, they would also miss out on a lot of potential profit. The situation would be even worse if Fidelity was approved before them.
The pros and cons of ETFs are complex and varied, but the issue of fairness is one of the most important ones. Grayscale has been organically accumulating Bitcoin, while Blackrock and Fidelity are issuing IOUs and can be free to short their own ETF. This raises questions about the disadvantages of not being a part of the “club” in terms of gaining access to the SEC. It’s almost like a high school situation, where Grayscale is the student trying to impress the girl but then Blackrock swoops in and takes her away.
The cryptocurrency industry is still waiting to find out what the outcome of the ETF saga will be. While it’s impossible to predict the future, one thing is certain: if Blackrock gets approved, it could be a major setback for Grayscale and a major win for Blackrock. We’ll just have to wait and see what happens.