BlackRock Financial Management’s global head of iShares and Index Investing said the financial firm is unlikely to launch exchange-traded funds related to crypto assets anytime soon.
In a Financial News report, BlackRock CEO Salim Ramji said the company, with $ 9.5 trillion in assets under management, “has no current plans” to launch an exchange-traded cryptocurrency fund or ETF pending regulatory clarity in the United States States rule. He added that BlackRock is unlikely to be among the first in this emerging market for crypto-exposure investments, but the company needs to practice due diligence.
“Before we pack or place our brand [crypto], we want to make sure that customers will be satisfied with us in five and ten years’ time, ”said Ramji. “Responsibility for cryptocurrencies remains extremely opaque and unclear at all.”
Strategic Bitcoin (BTC) ETFs from digital asset managers Valkyrie and ProShares were launched on the US exchanges in October. Both funds offer US investors direct exposure to crypto futures contracts, ready to approve trading products related to regulated products BTC futures contracts.
ProShares’ fund reached over $ 1 billion in assets under management in its first week of trading. Additionally, the BTC Strategy ETF has since risen to hit the top 2% of all ETFs in terms of total trading volume – roughly $ 400 million worth of stocks that were released on Nov.
Related: Why now? It took the SEC eight years to license a Bitcoin ETF in the United States
Although the Valkyrie and ProShares BTC strategy ETFs were launched within a few days, the asset manager VanEck’s offer does not yet have to be approved for listing on an exchange, despite reports.
Contradicting media reports BlackRock indicate the company’s start date. VanEck filed a prospectus for its strategic bitcoin ETF with the SEC on Aug. 9, but is also awaiting regulatory approval or rejection of a spot bitcoin ETF, which is expected to appear shortly.
Bloomberg Senior ETF Analyst Eric Balchunas speak he estimates the likelihood that the SEC will approve the VanEck fund at less than 1% based on its track record of rejecting offers from crypto-related investment firms.
“The Eagles have a better chance of winning the SuperBowl,” says Balchunas.