BlackRock, the world’s largest asset manager, has just filed an application to launch a spot Bitcoin ETF, marking its entry into the race for this coveted financial instrument. A particularly bold move as the cryptocurrency industry faces the wrath of the Securities and Exchange Commission (SEC).
BlackRock enters the race for Bitcoin spot ETFs
baptized iShares Bitcoin Trust, this spot Bitcoin ETF from BlackRock, if approved for launch, will provide US investors with exposure to Bitcoin through an instrument offered by one of Wall Street’s largest institutions. BlackRock’s request adds:
” The actions [de l’ETF Bitcoin] are intended to be a simple way to make an investment similar to investing in bitcoin rather than acquiring, holding and trading bitcoin directly on a peer-to-peer platform or through an exchange of digital assets. »
Coinbase Custodythe custodial service of the largest cryptocurrency exchange in the United States, would act as custodian for the fund. For setting its price, the ETF would rely on information from Coinbase. In parallel, BNY Mellon Bank would be the cash depository.
If the ETF is approved, it will be listed on NASDAQ, the 2nd largest equity market in the United States.
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A rather unfavorable context
The filing of this application for registration occurs when US web3 industry is under the spotlight of the Securities and Exchange Commission for alleged violations of securities laws. Earlier this month, the regulator filed high-profile lawsuits against the Coinbase and Binance platforms.
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Although quite weak, BlackRock’s move had a positive impact on the price of Bitcoin (BTC), which closed 2% higher yesterday.
The SEC’s decision on BlackRock’s Bitcoin ETF application is eagerly awaited, as it could pave the way for other spot Bitcoin ETFs and mark a key milestone in the regulatory acceptance of cryptocurrencies in the United States.
However, according to Bloomberg Intelligence, this is at least the 33rd attempt to register a Bitcoin ETF of this type. All previous requests were met with categorical refusal from regulators, who cited in particular a lack of investor protection. Additionally, Coinbase would act as the custodian of BlackRock’s Bitcoin ETF, as the platform faces SEC lawsuits.
In such a context, it would therefore be particularly surprising if BlackRock’s spot Bitcoin ETF were approved. The crypto community should get an answer within a few weeks.
👉 On the same theme – BlackRock expands its dedicated blockchain ETF for its European clients
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Sources: Securities and Exchange Commission; Bloomberg
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Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I have been striving to share quality content so that the sector becomes more democratic for everyone.
Clement Wardzala
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