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IMPORTANT POINTS:
- Strategists at Morgan Stanley believe that US stocks will outperform other competing markets.
- However, analysts estimate that the S&P 500 will close 2024 at 4,500 points, that is, just 80 units above the current level.
- In addition, the bank foresees a significant drop for the beginning of next year, when the shares will reach their “lowest point.”
BlackRock, the asset management giant with over $8 trillion under management, is questioning the US Securities and Exchange Commission’s (SEC) stance on Bitcoin (BTC) exchange-traded funds (ETFs). and Ethereum (ETH) from the spot market. The firm maintains that there is no substantial difference between spot and futures ETFs, and therefore the former should also be approved.
In a recent filing, BlackRock argues that since the SEC has already approved ETFs that offer exposure to ETH futures, which are based on the ETH spot market price, exchange-traded products (ETPs) that offer direct exposure to ETH should also be authorized.
Also read: Who is Larry Fink and how much is his fortune? The founder of BlackRock
Use of the Investment Company Act of 1940
BlackRock criticizes the SEC’s use of the Investment Company Act of 1940 to apply to spot ETFs, arguing that this law does not seek to mitigate risks arising from the underlying assets or the markets for those assets. The firm emphasizes that the 1940 Act’s restrictions do not address an ETF’s underlying assets, whether ETH futures or ETH spot, nor the markets from which its price is derived.
Also read: BlackRock What is it and how does it work? The controversial investment company
BlackRock and its Position on ETF Regulation
BlackRock concludes that the distinction made by the SEC between futures ETFs registered under the 1940 Act and spot ETFs registered under the 1933 Act is arbitrary and has no merit in the context of ETH-based ETP proposals.
Recently, BlackRock registered its Ethereum iShares trust in Delaware, following a similar line to that of the registration of its Bitcoin trust, marking a significant advance in its investment strategy in cryptoassets.
BlackRock’s stance challenges current SEC regulations, seeking greater openness and approval of cryptocurrency-related financial products, especially Bitcoin and Ethereum spot ETFs. This challenge not only reflects the growing demand and interest in these digital assets, but also highlights the need for clearer and more consistent regulation in the cryptoasset market.