BlackRock’s recent filing for a Bitcoin trust has received mixed responses from the cryptocurrency industry. While some observers believe it will boost investors’ confidence in Bitcoin and even be “the best thing that could happen” to BTC, others warn of a hidden cost and potential negative consequences. Galaxy Digital CEO Mike Novogratz hailed the ETF application as a positive move, stating it would be “the best thing that could happen to $BTC.” He expressed hope that BlackRock, the world’s largest asset manager, would successfully pull off a Bitcoin ETF. Cryptocurrency analyst James Edwards of Finder.com also sees the timing of BlackRock’s filing as a sign of confidence in Bitcoin’s status as a commodity, rather than a security. He believes that BlackRock’s willingness to press on with a Bitcoin ETF during a time when the SEC is cracking down on crypto shows their confidence in Bitcoin’s future legal status. Edwards also notes that BlackRock intends to use Coinbase Custody to control funds, which should be seen as a massive confidence booster for Coinbase as it prepares its legal defense. He explains that BlackRock likely wouldn’t partner with Coinbase had they not been “confident” in Coinbase’s legal position. However, some critics argue that such approval would undermine the ethos of decentralized cryptocurrencies. Investor Scott Melker argues that it would be a disservice to crypto-native innovators who built the industry. He states that while it may be good for institutional adoption, it violates the ethos and is a push away from the people who built the industry in the United States. Cinneamhain Ventures partner and Ethereum bull Adam Cochran believes that BlackRock will swoop in on the “discounted coins” of retail investors, a theory also shared by Melker.  Steven Lubka, a managing director at Swan Bitcoin, shares a similar view, predicting that BTC will reach $1 million, but few retail investors would reap the rewards because the bulk of BTC will be owned by BlackRock, Goldman Sachs, and other ETF issuers. Melker adds that Wall Street firms will continue to move into the space and that U.S. regulators will likely “choose them” over incumbent platforms. Meanwhile, other investment firms, including ARK Invest, Grayscale, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree, have also applied for similar Bitcoin and cryptocurrency ETFs. Since the news was first reported, the price of BTC has increased 2.2% to $25,584 at the time of writing. Interestingly, the Fear & Greed Crypto Index increased from 41 to 47, leaving the fear zone, following the news of BlackRock’s filing. Source: Cointegraph