Leading asset manager BlackRock (NYSE:BLK) filed an application with the U.S. Securities and Exchange Commission to offer a Bitcoin (BTC-USD) exchange traded fund (ETF). The ETF, named iShares Bitcoin Trust, if approved, would enable investors to gain exposure to crypto. The crypto market reacted positively to the news of BlackRock’s ETF plans.
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Bitcoin was up over 2% as of writing, while shares of crypto exchange Coinbase Global (NASDAQ:COIN), which is listed as the Bitcoin custodian in BlackRock’s ETF application, advanced 1.5%.
SEC’s Stance on Bitcoin ETFs
It is worth noting that the SEC has not yet approved the launch of a spot Bitcoin ETF in the U.S. Last year, the SEC rejected Grayscale Investment’s application to convert its spot Grayscale Bitcoin Trust (GBTC) into an ETF. In reaction, Grayscale sued the SEC, with a decision in this case expected later this year. Aside from Grayscale, the SEC previously rejected applications for spot Bitcoin ETFs from several other firms, including Fidelity and Cboe Global Markets.
BlackRock’s move comes as the regulatory crackdown on the crypto market has heightened over recent months. The SEC recently sued Coinbase Global and Binance (BNB-USD) for allegedly operating unregistered securities exchanges in violation of federal securities laws.
Commenting on BlackRock’s application, Joshua Chu, the group chief risk officer at blockchain technology group Coinllectibles, Marvion and XBE, told Reuters that the news of a reputed and established asset management company like BlackRock filing a proposal for a Bitcoin ETF could be seen as a “positive development in the quest for regulatory approval.”
Is BLK a Good Stock to Buy?
Of the 12 top Wall Street Analysts covering BlackRock, nine have a Buy rating and three have a Hold recommendation. The average price target of $761.75 implies 7.1% upside. BLK shares are essentially flat year-to-date.
On Thursday, analysts at Citigroup and Deutsche Bank reiterated a Buy rating on the stock, with a price target of $750 and $777, respectively.
Deutsche Bank analyst Brian Bedell thinks that BlackRock’s Investor Day reinforced his trust in the company’s organic asset and revenue growth. The analyst highlighted the company’s plan to offer “whole portfolio” solutions for institutions and financial advisors as well as retail investors by leveraging its extensive offerings of asset management products and tech services.
