In July 2022, BlackRock, the world's largest asset management firm, was actively traded on the New York Stock Exchange (NYSE).
In a significant development in the crypto market, BlackRock (BLK.N), the leading asset manager globally, has recently submitted an application to establish a Bitcoin exchange-traded fund (ETF). This move seeks to provide investors with a pathway to the cryptocurrency market amidst its ongoing examination by regulatory bodies.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the iShares Bitcoin Trust by BlackRock plans to collaborate with Coinbase Custody for custodian services. However, the U.S. regulator has not yet given the green light to any spot bitcoin ETF applications.
BlackRock pioneered the launch of a spot bitcoin private trust targeting institutional clients within the United States last year.
This strategic move takes place amidst the mounting scrutiny of the international cryptocurrency industry by the U.S. securities regulator, citing supposed breaches of securities laws.
Recently, high-profile lawsuits have been filed against major exchanges like Coinbase and Binance, causing ripples throughout the digital asset industry.
Joshua Chu, Group Chief Risk Officer at blockchain technology group XBE, Coinllectibles, and Marvion, remarked, "BlackRock's filing for a Bitcoin ETF, given its reputation as a credible and established asset management firm, can be viewed as a progressive step towards securing regulatory approval." He further highlighted this action as indicative of the persistent public interest in cryptocurrency.
A spot bitcoin ETF, which mirrors the underlying bitcoin market price, could allow investors to gain exposure to bitcoin without making direct purchases.
The SEC dismissed an application from Grayscale Investment LLC last year that aimed to convert its primary spot Grayscale Bitcoin Trust (GBTC.PK) into an ETF. Grayscale responded with a lawsuit against the SEC, arguing the regulator's inconsistency in rejecting spot bitcoin ETF applications while previously approving bitcoin futures ETFs.
Other companies, including Fidelity, Cboe Global Markets, and NYDIG, have also had their proposals for spot bitcoin ETFs turned down by the SEC.
Following the announcement, Bitcoin prices rose by 2%, reaching $25,506 on Friday. The top cryptocurrency has increased by 54% this year.
Juliette Twain: Jun 19, 2023 11:48:10 AM