So, the unchallenged leader in the ETF space (BlackRock) doesn’t want to lead in the newest, hottest and least crowded sector for new Exchange Traded Funds (ETF’s). What is it you ask? A BITCOIN ETF. Can’t say I blame them since the SEC (again NOT the football conference) is not eager to approve bitcoin ETFs and, of course, the bitcoin markets are just not totally there yet. But they will be and you can bet BlackRock will re-visit their thinking somewhere down the line. Hey BlackRock (and Larry Fink), keep your eyes open to opportunity and some fast changes coming.
“BlackRock Inc. has profited by being beating its competitors in exchange-traded funds to the punch, but Chief Executive Officer Larry Fink seems happy to be out of step with at least one trend—the race to build a bitcoin fund.
The world’s largest asset manager on Friday reported earnings that beat Wall Street expectations, due in no small part to aggressive investments in ETFs that track all sorts of financial markets. Investors are flocking to the relatively low-cost investments.
But when asked about a recent proposal by a competitor to build a “leveraged” ETF that would rise—or fall—twice as fast as the price of bitcoin on a given day, Fink was dismissive.
“Those are not the kinds of products we would introduce at BlackRock,” Fink told Reuters. “Our actions will speak louder than our words.”
The comments come as a host of BlackRock’s smaller rivals in the ETF space position themselves for they hope is a gold rush to capitalize after bitcoin’s 1,500 percent surge last year.
Among the proposals, Direxion Asset Management LLC is hoping to list a leveraged bitcoin ETF on Intercontinental Exchange Inc’s NYSE Arca exchange that is intended to double the price moves of the digital asset on a given day, according to filings last week.
The U.S. Securities and Exchange Commission has been reluctant to let bitcoin funds come to market, with the regulatory agency asking tough questions about the stability of the market for the digital asset and pushing some issuers to withdraw their proposed funds…”