BlackRock Files Application for Spot Bitcoin ETF with SEC
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Global asset manager BlackRock has applied to the Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF). If approved, the ETF would trade on the Nasdaq stock market, making it one of the earliest publicly traded spot bitcoin ETFs in the United States.
BlackRock, with assets under management totaling $9 trillion, already operates a private spot Bitcoin trust introduced in 2022. The proposed ETF represents an expansion of its collaboration with cryptocurrency exchange Coinbase, which would act as the custodian for the fund’s bitcoin holdings.
The BlackRock Bitcoin ETF News Is a Breath of Fresh Air for the Market
The potential introduction of a spot Bitcoin ETF by BlackRock holds promise for the cryptocurrency market, following a series of setbacks such as the 2022 collapse of FTX and the SEC’s recent lawsuits against Coinbase and Binance for alleged securities violations.
Nevertheless, the approval of BlackRock’s application by the SEC remains uncertain. The regulatory agency has previously rejected multiple ETF proposals from other asset managers, citing concerns about unregulated exchanges and the associated risks of market surveillance and manipulation.
In fact, the SEC is currently facing a lawsuit filed by Grayscale over its refusal to allow the conversion of the world’s then-largest crypto investment vehicle into a listed ETF. The lawsuit argues that the SEC’s decision was arbitrary, particularly considering its approval of ETFs based on bitcoin futures.
BlackRock’s move coincides with the SEC’s proposal for new custody rules that would place additional responsibilities on asset managers to ensure proper segregation of customer assets in designated accounts.
Only 20% of Americans Have Owned Bitcoin
Experts from CF Benchmarks, a digital asset benchmarking provider, estimate that approximately 20% of Americans have owned Bitcoin at some point. BlackRock’s proposed ETF could potentially provide the remaining 80% with a more familiar and accessible option.
Overall, BlackRock’s application for a spot bitcoin ETF signals the asset manager’s willingness to explore new opportunities in the cryptocurrency space while also addressing investor demand for regulated investment vehicles in the emerging digital asset market.
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