As the asset class faces heightened regulatory scrutiny, BlackRock (BLK.N), the world’s largest asset manager, filed for a bitcoin exchange-traded fund (ETF) on Thursday.
According to an SEC filing, BlackRock’s iShares Bitcoin Trust will employ Coinbase Custody. The U.S. regulator has not approved spot bitcoin ETF applications.
BlackRock launched a U.S. institutional spot Bitcoin private trust last year.
The U.S. securities regulator investigates the worldwide cryptocurrency business for securities law violations.
The agency sued Coinbase and Binance last month, sending shockwaves across the digital assets industry.
“The fact that BlackRock, a well-respected and established asset management company, has filed for a Bitcoin ETF could be seen as a positive development in the quest for regulatory approval,” said Joshua Chu, group chief risk officer of blockchain technology group XBE, collectibles, and Marvion.
“It also shows public crypto interest’s resilience.”
Spot bitcoin ETFs track bitcoin’s market price. Proponents think an ETF would provide investors bitcoin exposure without buying it.
Last year, the SEC denied Grayscale Investment LLC’s ETF application for its flagship spot Grayscale Bitcoin Trust (GBTC.PK).
After approving bitcoin futures ETFs, Grayscale sued the SEC for arbitrarily rejecting spot bitcoin ETF applications.
Fidelity, Cboe Global Markets, and NYDIG had spot bitcoin ETF plans rejected by the SEC.
Bitcoin prices rose 2% Thursday after the announcement. Last Friday, they were $25,506. The biggest cryptocurrency rose 54% this year.
CoinDesk reported earlier today on BlackRock’s ETF plans.
Comment Template