BlackRock, the world's largest asset manager, surprised industry experts with its entry into the cryptocurrency ETF race. "I didn't think BlackRock was even looking at this," said Eric Balchunas, Senior ETF Analyst at Bloomberg, expressing disbelief in the development.

On the Blockworks Macro podcast, Balchunas emphasized the importance of BlackRock's filing considering its dominant position in the financial market.

He explained: "The BlackRock filing is just mind-boggling. There's so much going on; you think about it and then Larry, I, you know, we all remember him trashing crypto five years ago. So, it didn't make sense to me. And so, when I saw it , I was like, “Oh my God.”

Initially confirming just 1%, the analyst noted that BlackRock's entry quickly increased those rates to 50%. He speculated about BlackRock's motivations and suggested an income opportunity and a chance to disrupt crypto exchanges that are perceived as expensive and potentially unreliable.

The analyst connected the dots further by saying that BlackRock has the potential to act as a disruptor in the crypto space. He discussed their previous emphasis on ESG (Environmental, Social and Governance) funds facing challenges and suggested that BlackRock sees a new opportunity in the crypto ETF market.

Grayscale's recent victory in a legal case also played a crucial role in improving the chances of overall ETF approval. Balchunas emphasized the change in the SEC's approach with active participation and feedback, breaking the pattern of radio silence observed in previous years. However, he suggested that BlackRock's entry makes them the favorites, given their large distribution networks and widespread trust among advisors. #blackrock #Bloomberg #kripto #etf #bitcoin