FX.co ★ BlackRock continues efforts to launch Bitcoin ETF

Bitcoin and Ethereum have surged following an interview with BlackRock CEO Larry Fink, in which he stated that he was willing to work with regulators and address any concerns they may have regarding the asset manager's recent application to launch its own Bitcoin ETF. Fink also referred to the largest cryptocurrency by market capitalization as a "digitizing gold."

A few weeks ago, BlackRock, the world's largest asset management firm, had filed an application with the U.S. Securities and Exchange Commission (SEC) to create its own Bitcoin ETF, which sparked a cryptocurrency rally. Bitcoin made notable gains, followed by Ethereum and other altcoins. While many skeptics believe that BlackRock may face the same fate as previous ETF attempts, the recent interview with the CEO suggests that things may not be as straightforward.

During the interview, Larry Fink said that BlackRock's track record with regulatory bodies spoke for itself. He stated that their primary objective was to address all potential issues and risks associated with any application the fund filed. He further mentioned that BlackRock was eagerly awaiting feedback from regulators regarding the issues it might encounter, with the goal of resolving these matters before the fund's launch.

"What we're trying to do with crypto is make it more democratized, and make it much cheaper for investors," he continued. "The bid spread for crypto is very expensive. It does erode a lot of the returns... And so, we hope that our regulators look at these filings that as a way to democratize crypto and we'll see in the future how that plays out," Larry Fink added.

Last week, BlackRock resubmitted Form 19b-4 for the BlackRock iShares Bitcoin Trust, just a few days after reports emerged that the Securities and Exchange Commission had determined that the recent applications for spot Bitcoin ETFs were not "clear and comprehensive."

Speaking about Bitcoin in general, Fink compared the asset to gold, although he stated that he personally does not own it. "I do believe the role of crypto is digitizing gold in many ways," he added. "Bitcoin is an international asset, it's not based on any one currency and so it can represent an asset that people can play as an alternative."

Currently, the SEC has yet to greenlight a spot Bitcoin ETF. Recent applications may face hurdles from the agency, which has expressed concerns about potential fraud and market manipulation when evaluating prospective spot funds.

On the technical side, Bitcoin is likely to continue rising in current conditions as long as it is trading above $29,780, which leaves room for a bull market with a chance of hitting $31,260 and $32,300. The most distant target would be $34,300, where large profit taking could lead to a pullback. Should BTC end up under renewed pressure after a breakout below $29,780, bullish traders will focus on defending $28,440. A breakdown below that level would deliver a blow to the asset, opening a direct path to $27,390.

Ethereum bulls remain focused on defending the short-term support at $1,890 and breaking through the resistance at $1,960. Only after that, ETH can be expected to reach $2,050 and $2,127, which will allow the bullish trend to continue and lead to a new push into the $2,250 area. If ETH is pressured once again, the $1,890 level will come into play, a breakout of which will lead to a test of $1,815. The $1,702 area is a key target below that.