(CTN News) – Earlier this month, BlackRock, the world’s largest asset manager with assets exceeding $9.4 trillion, applied for its inaugural spot in the Bitcoin ETF.
In the finance and cryptocurrency communities, the product has been eagerly anticipated. By investing in Bitcoin ETFs, investors are able to gain exposure to Bitcoin without directly holding the cryptocurrency.
A significant step forward for institutional investors and a boon for BlackRock.
BlackRock Spot Bitcoin ETF application is being reviewed by the SEC
BlackRock was under the watchful eye of the Securities and Exchange Commission (SEC) as recently as January. A possible conflict of interest had been identified by the regulators.
Randy Robertson was taken into custody by the agency on January 5, 2023. In the past, he was a portfolio manager at BlackRock Advisors, LLC. The fund he managed invested millions of dollars in a film distribution company in which he was associated.
Investigations revealed that BlackRock Multi-Sector Income Trust (BIT), a publicly traded fund, had lent $75 million to subsidiaries of Aviron Group, LLC, which finance movie advertisements.
The SEC’s findings were accepted without Robertson admitting or denying them. An amount of $250,000 was agreed to be paid by him as a penalty. A cease-and-desist order was also issued and an official censure was issued to the former BlackRock employee.
Moreover, Blackrock’s blend of fiscal and social policy does not sit well with powerful Republican figures. Governor Ron DeSantis, a conservative firebrand from Florida, has attacked BlackRock.
A candidate for the Republican nomination for the year 2024 has criticized big fund managers for prioritizing social and environmental objectives (ESG). For sacrificing the traditional goal of maximizing investor returns.
The Republican Party has joined the chorus at both the state and federal levels. In December 2022, DeSantis announced that Florida’s assets were being pulled from “woke” for $2 billion.
Crypto Investing Will Be Democratized, Says CEO
Asset managers are no strangers to controversy. German prosecutors searched the firm’s Munich offices in 2018, in what Reuters described as Germany’s largest fraud investigation since World War II.
BlackRock allegedly exploited a tax loophole known as “cum-ex,” stealing from the government. Financial institutions are alleged to have engaged in a scheme in which dividend-paying shares were traded among each other. It is alleged that company officials timed the trades in order to enable multiple institutions to claim tax refunds.
It is the intention of the tax laws that each refund should only be subject to one claim per refund.
Despite the turmoil, BlackRock has embraced cryptocurrency, particularly Bitcoin, as one of its key investments. initial Bitcoin ETF application was followed by Invesco, Wisdom Tree, Bitwise, and Fidelity.
It is our responsibility to democratize investing. As a result of our efforts, ETFs are playing an important role in transforming the way investors invest in the world.
On July 14, Larry Fink, CEO of BlackRock, told CNBC’s Squawk on the Street that we are just at the beginning of this process.