BlackRock, the world's largest fund manager, filed for a spot Bitcoin exchange-traded fund (ETF) yesterday (Thursday). The application came when the Securities and Exchange Commission (SEC) brought lawsuits against Coinbase and Binance, two big crypto exchange brands.
BlackRock Files for a Bitcoin ETF
The permission for the spot Bitcoin ETF is being sought by BlackRock's iShares unit. The ETF, to be named as iShares Bitcoin Trust, will use the custodian services offered by crypto exchange Coinbase.
"The Bitcoin Custodian is responsible for safekeeping the Bitcoin owned by the Trust. The Bitcoin Custodian is appointed by the Trustee," the filing with the SEC stated.
According to the official filing, BlackRock will use CME CF Bitcoin Reference Rate to track the Bitcoin prices. CF Benchmarks, a subsidiary of the crypto exchange Kraken, takes price data from reputed cryptocurrency exchanges around the world.
"The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in Bitcoin," Blackrock stated in the SEC filing.
The SEC has adamantly refused to approve a spot bitcoin ETF for years, a view so entrenched that it's litigating the issue against Grayscale right now.Knowing the SEC disagrees, Blackrock—BLACKROCK—wants to list a bitcoin ETF on NASDAQ.Everyone gets how big this is, right? https://t.co/IiRnKd5O4N
— Jake Chervinsky (@jchervinsky) June 16, 2023
The SEC Rejected Spot Bitcoin ETFs
Several other cryptocurrency and traditional finance companies, including Grayscale, VanEck, and WisdomTree, have applied for the SEC's approval for a spot Bitcoin ETF. However, despite repeated applications, the US securities regulator is reluctant to approve any.
However, there are a few futures-based Bitcoin ETFs listed on US exchanges.
The entrance of BlackRock to seek approval for a spot Bitcoin ETF might change the regulatory stance towards the crypto investment vehicle. BlackRock is the largest asset management firm globally and manages more than $10 trillion in assets under management (AUM).
The interest of BlackRock in Bitcoin is not new. The company launched a spot Bitcoin private trust for institutional clients in the United States last year. Now, if its spot Bitcoin ETF is approved, it will open and ease Bitcoin investments for regular retail investors.
This article was written by Arnab Shome at www.financemagnates.com.
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