In a bold move by the world’s largest asset manager, BlackRock has announced the launch of a private trust that will give clients exposure to spot Bitcoin. The move is seen as competition to Grayscale Bitcoin Trust (GBTC), as BlackRock seeks to fill its own trust with spot Bitcoin. Despite regulatory fears and macroeconomic conditions, the largest asset manager on earth is not afraid to take the plunge into Bitcoin.
Growing Interest in Bitcoin
According to Larry Fink, BlackRock’s CEO, there has been a growing interest in Bitcoin from various institutions. BlackRock has been involved with Bitcoin miners and even Silvergate, showing that the company is preparing for something big. While retail investors are fearful and panicking, big boys like BlackRock are accumulating and preparing for the future.
Regulatory Concerns
Despite the growing interest in Bitcoin, regulatory concerns have also been raised. Gary Gensler, the new Chairman of the SEC, is trying to impose strict regulations on the industry. However, crypto expert George Tung believes that there are lawsuits that could end Gensler’s rule. The first is the attempt to stop Voyager from being bought out by Binance. The judge has already ruled in favor of the acquisition, causing disruption to Gensler’s plans.
Ripple’s Lawsuit
The second lawsuit is Ripple’s case against the SEC. There is a growing sentiment that Ripple is about to win the case. The judge threw out the SEC’s expert witness, leaving the organization without any proof that Ripple was making a profit from selling XRP. This could change the industry and put Gensler in his place.
Grayscale’s Lawsuit
The third lawsuit is Grayscale’s case against the SEC. The company is arguing that there is no good reason why the SEC stopped a spot Bitcoin ETF, even though Grayscale and Fidelity have met all the conditions. The lawyer is now saying that Grayscale has a 70% chance of winning the lawsuit. This could force Gensler to allow a spot Bitcoin ETF, bringing billions of dollars into the space.
Exciting Times Ahead
The potential losses faced by Gensler in these cases could lead to massive changes in the crypto space. Coinbase may even have the balls to go after the SEC and Gensler, saying that staking is not illegal. Paxos or Binance may also sue the SEC for declaring their stablecoin security. With these potential losses, Gensler may be on his way out, says George Tung.
Source: https://coinpedia.org/news/expert-outlines-reasons-why-he-thinks-sec-gary-genslers-facing-massive-losses-soon/