and interview with Elliot Johnson of Evolve ETF, a Canadian investment firm that manages EBIT Johnson commented on what he sees as the key to BlackRock’s potential success in acquiring a Bitcoin ETF: the surveillance agreement.
monitoring sharing agreement
Johnson also touched on the topic of BlackRock’s filing in discussing regulatory-run constraints. He explained that a distinctive aspect of their application is the surveillance agreement in place between Coinbase and NASDAQ. The agreement will allow regulators to investigate bitcoin transactions, providing the market with much-needed oversight and integrity.
Mr Johnson explained:
“The regulations mention the need to monitor venues of significant size where underlying assets held in ETFs are traded. Significant size – Coinbase has ticked that box. We are using the existing technology of
The oversight agreement is a factor that could give BlackRock an edge in the ETF approval process. However, Kathy Wood’s recent amendment to the 21Shares Spot Bitcoin ETF application added a similar “monitoring sharing agreement” to the application originally filed in April.
So while this looks like a move to beat BlackRock, Johnson’s insight reinforces Cathy Wood’s analysis and bullish sentiment that it finally got approval for a spot bitcoin ETF. confirm.
Struggling for ETF Approval
Johnson also noted how the SEC sees Bitcoin as a commodity rather than a security. The presence of major exchanges like Coinbase, which provides trading data to Nasdaq, further strengthens the rationale for BlackRock’s Bitcoin ETF approval.
The U.S. Securities and Exchange Commission (SEC) has refrained from approving a Bitcoin ETF for years. This is due to concerns over possible surveillance and manipulation of the spot market, where the majority of bitcoin trading volume often occurs outside the United States. However, the spot market has been a constant subject of discussion.
In an interview, Johnson explained the importance of a transparent and regulated index: CF benchmark As an example. The indices we use are highly regulated, eliminating price manipulation and ensuring fair and efficient pricing. This feature is critical to the proper functioning of Bitcoin ETFs and hints at why BlackRock may succeed.
“The quality of that index will allow BlackRock to do what we do every day – trade bitcoin over the counter at that price without slippage,” Johnson noted.
Featuring a strong oversight mechanism, the introduction of BlackRock’s Bitcoin ETF could mark a tipping point for the cryptocurrency space. Johnson predicts that with the potential approval of BlackRock’s Bitcoin ETF, professional investors will see Bitcoin as a desirable asset in their portfolios.
Reflecting on his steps, Johnson predicted an optimistic future in which Bitcoin merges with existing financial infrastructure. “We believe the future will be one that combines existing industry infrastructure with Bitcoin, which is currently a key asset within that infrastructure,” he explained.
When discussing how bitcoin could pose career risks, Johnson noted a significant shift in investor sentiment since 2017. But in 2021, “investors were telling us, ‘We have to know about Bitcoin,'” he said. Career risk is too great to ignore Bitcoin. ”
He predicted that investors would soon see not owning bitcoin as “too much career risk”.