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Report suggests BlackRock has ‘no current plans’ to launch crypto ETF as deadline for VanEck’s offering approaches


According to BlackRock Financial Management’s global head of iShares and index investments, exchange-traded funds tied to crypto assets are unlikely to be available anytime soon.

According to a Financial News storey published on Nov. 12, BlackRock CEO Salim Ramji stated, the firm, which manages $9.5 trillion in assets, has “no present intentions” to establish a cryptocurrency exchange-traded fund, or ETF, until there is more regulatory certainty in the US. He elaborated that BlackRock was unlikely to be among the first in this growing industry for crypto investments. However, the corporation needed to be cautious.

“We want to make sure that our clients will be jubilant with us in five or ten years. Before we wrap or put our brand on crypto”, Ramji stated. “The regulatory environment for cryptocurrencies is still cloudy and ambiguous”, he elaborated.

In October, Valkyrie and ProShares debuted Bitcoin (BTC) Strategy ETFs on US stock platforms. Both funds provide direct exposure to cryptocurrency futures to U.S. investors. With the filings likely prompted by Securities and Exchange Commission chair Gary Gensler’s suggestion in August. That the agency might be open to approving exchange-traded products that are exposable to regulated BTC futures contracts.

ProShares’ fund surpassed $1 billion in its first week of trading

During its first week of trading, ProShares’ fund surpassed $1 billion in assets under management. Furthermore, the BTC Strategy ETF has ascended to the top 2% of all ETFs in terms of the overall trading volume. With almost $400 million worth of shares exchanged on November 10.

Despite contradicting media reports indicating a specific launch date, VanEck’s BTC Strategy ETF has yet to be available for listing on any exchange. On Aug. 9, VanEck submitted a prospectus with the SEC for its Bitcoin Strategy ETF. But it is still awaiting clearance or refusal from the regulatory body for its spot Bitcoin ETF. Which is likely to be decided by Nov. 14.

In fact, the SEC’s past record is full of rejecting proposals from financial firms with exposure to crypto. Hence, senior ETF analyst at Bloomberg Eric Balchunas estimates the chances of the VanEck fund being approved are fewer than 1%.

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