WHY BLACKROCK ETHEREUM ETF IS PIVOTAL TO THE ACCEPTANCE AND INTEGRATION OF CRYPTOCURRENCIES
In the evolving finance landscape, combining traditional investment mechanisms with cryptocurrencies has been a keen interest and innovation topic. At the front of this progression is BlackRock, the global asset management titan renowned for its pivotal influence in financial markets. Making a bold move that underscores its growing interest in digital currencies, BlackRock made headlines with its application for an Ethereum-based exchange-traded fund (ETF), dubbed the iShares Ethereum Trust. This initiative isn’t just a significant leap for BlackRock; it also represents a critical juncture in the broader financial sector’s acceptance and integration of cryptocurrencies. Let’s check out how Blackrock Ethereum ETF plays a pivotal role in the finance industry.
What happens if nobody sells his Bitcoins to BlackRock?
During Bitcoin halving years, we have seen rallies of +186% (2012), +126% (2016) and +297% (2020). At a Bitcoin price of 40,000 per coin, twenty-five thousand coins equate to $1 billion – or 250,000 Bitcoins equate to $10 billion. Compare this to the approximately 328,125 Bitcoins that were (will be) mined in 2023. A BlackRock Bitcoin ETF could scoop up 76% of all the supply from the mining community – not even considering that rewards will be cut in half from April 2024 onwards. Only 5.8 million of the 19.4 million mined Bitcoins have been moved during the last year, signaling that 70% of coins are just held for longer. 2.4 million Bitcoins appear to have been moved during the last six months, and this short-term holder supply could indeed be seen as the true free-float of the Bitcoin market.
