Crypto is gaining traction with financial institutions, with BlackRock (BLK) and Invesco (IVZ) both applying for a spot Bitcoin ETF. WisdomTree also refiled for a spot Bitcoin asset. A crypto exchange backed by Fidelity, Schwab and Citadel Securities launched in the US, and Deutsche Bank applied for a digital asset license in Germany.
So why are these large asset managers taking a fresh look at crypto? Many have offered theories, but the simplest explanation is that Financial institutions like making money and offering a spot Bitcoin ETF is a way to make money, as CoinDesk’s David Z. Morris puts it.
BlackRock and Invesco are likely responding to client demand for crypto exposure, and if the ETF is approved, other BlackRock-sponsored crypto products may follow. The SEC has made it clear that its issue lies with other alleged securities masquerading as cryptocurrencies, not with Bitcoin itself.
Though the influx of spot Bitcoin ETFs may have an insidious reason behind it, the main motivation is likely financial gain.