BlackRock's Potential Bitcoin ETF Could Stir Market

Critics Warn of Potential Impact on Transaction Fees

• BlackRock, a $9 trillion powerhouse, is rumored to have $2 billion earmarked to cover day-one interest in its spot ETF, should the SEC allow it.
• The bitcoin investment product market is currently worth $10 billion without GBTC. $6.3 billion is tied to physically-backed products, meaning they hold an equivalent amount of bitcoin.
• Analysts estimate that BlackRock's US-listed bitcoin ETF would have to buy up to $5.2 billion in bitcoin to satisfy analogous investor demand.
• Spot bitcoin ETFs are seen as a big deal because they could usher in new investor cohorts from traditional finance, significantly improving market transparency and liquidity.
• However, critics argue that spot ETFs could potentially dry up transaction fees over the long-term, which could impact miners who rely on these fees.

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