RocketFuel Blockchain Inc (OTCQB:RKFL) CEO Peter Jensen believes that allowing major financial firms to sell US spot Bitcoin ETFs would shore up “credibility and trust” for more people to invest in cryptocurrencies, creating a watershed moment.
The drumbeat for institutional Bitcoin demand has grown louder as BlackRock Inc (NYSE:BLK), Fidelity Investments, WisdomTree, VanEck and Invesco, have submitted applications to sell US “spot” Bitcoin exchange-traded funds (ETFs) that would be physically backed by actual Bitcoin.
Cathie Wood’s Ark Invest has also filed for changes to its proposed Bitcoin fund that brings it more in line with BlackRock’s application.
In the past, the US Securities and Exchange Commission (SEC) has consistently rejected these products. However, Bitcoin has jumped since June 15, when BlackRock, the largest asset manager in the world, first filed to launch a spot Bitcoin ETF.
Jensen noted that investors and Wall Street are reacting “favorably” to the entrance of mainstream financial institutions into Bitcoin — a trend that lends further bona fides to cryptocurrency.
“A majority of the population is still not knowledgeable about crypto which is why they stay away from taking advantage of this new technology. If mainstream institutions like BlackRock and Fidelity enter the market it will be great for everyone. It would create increased awareness, exposure and quicken the adoption of cryptocurrencies,” Jensen told Proactive.
“It’s important because the adoption of all new technologies – Internet, mobile phones – were first dependent on awareness and knowledge about the new technology. This could provide credibility and trust…make more people experiment with crypto.”
As a Silicon Valley tech visionary, Jensen is focused on making sure that his own San Francisco-based global payments company RocketFuel leverages Bitcoin’s technology endoskeleton, blockchain, to optimize processes to speed up cross-border payments.
First-mover advantage
Companies like BlackRock and Ark Invest are now jockeying to launch the first spot Bitcoin ETF in the US — and gain a significant first-mover advantage in a new market. BlackRock has refiled its application for an ETF that would focus on Bitcoin spot markets after the regulators expressed misgivings about its first attempt. It has been refiled on behalf of BlackRock by the tech-dominated Nasdaq stock exchange.
“I do believe that they will get it and others will get it too eventually. I do believe the SEC wants to get it done. I would rather that they spend time and get it right from the start,” said Jensen.
The Nasdaq filing indicated that BlackRock will be finalizing a surveillance agreement with Coinbase, addressing one of the main objections the SEC has raised when rejecting applications for Bitcoin spot ETFs in the past.
In other words, the potential ETF will rely on Coinbase, the largest crypto exchange in the US, as its custodian and for its spot market data for pricing.
RocketFuel is a global payments solution company that provides online shoppers with an easy-to-use, one-click checkout process that accepts payments with bank transfers, bitcoin and over 160 cryptocurrencies. The company also has RocketFuel Payouts, a product that allows businesses to pay people in crypto or fiat currencies as it drives the rapidly evolving world of international commerce.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive
